- Freehill Mining (FHS) subsidiary San Patricio Mineria SpA has signed a formal binding agreement with Minera El Dorado SCM for the El Dorado Project
- El Dorado is a Chilean project which is highly prospective for magnetite, copper and gold mineralisation
- This agreement grants San Patricio an option to purchase land which neighbours Freehill’s Yerbas Buenas magnetite project
- If the purchase is made, 75 million shares will be issued to the seller
- As a result, Freehill will conduct a shareholder meeting to gain approval for the purchase of El Dorado
- Despite the news, Freehill shares are down 7.84 per cent today, trading for 4.7 cents per share
Freehill Mining (FHS) subsidiary San Patricio Mineria SpA has signed a formal binding agreement with Minera El Dorado SCM for the El Dorado Project.
El Dorado is a Chilean project which is highly prospective for magnetite, copper and gold mineralisation.
This agreement grants San Patricio an option to purchase land which neighbours Freehill’s Yerbas Buenas magnetite project.
If the purchase is made, 75 million shares will be issued to the seller, who will be prohibited from dealing with or renumbering the tenements during the option period.
The decision comes after El Dorado recently received results from a rock chip reconnaissance sampling program. These results reported grades above 45 per cent iron, as well as 4.85 per cent copper and 22.8 g/t gold.
The company says the sale will take place in accordance with Chilean law and the procedures will follow the La Serena Mining Registrar.
Freehill will also conduct a shareholder meeting to gain approval for the purchase of El Dorado.
“The strategic rationale for this acquisition has been well documented and we are pleased to be kicking off a planned preliminary schedule of works so we can immediately commence exploration activities the moment shareholders approve the transaction,” CEO Peter Hinner said.
“Ground magnetic Surveys and Induced Polarisation (IP) works will be undertaken to give us a better understanding of the likely hot spots and thus first drill targets. There is much to look forward to as we unlock El Dorado’s significant value,” he added.
Despite the news, Freehill shares are down 7.84 per cent today, trading for 4.7 cents per share at 11:00 am AEST.