TSX Venture Exchange: FRI Shares Issued: 13,476,232
VANCOUVER, Aug. 13 /CNW/ - Freeport Resources Inc. is very pleased to announce regulatory approval for bulk sampling at its Hutton Garnet Beaches is basically complete, with the final permit received today. This landmark development is the result of over a year's work. Selection of suitable barges is subject to availability and well underway. Collection and processing of the 5,000 tonne bulk sample will confirm logistics for commercial-scale production.
The Hutton project consists of several garnet-rich 'bayhead' beaches created by marine reworking of offshore glacial deposits; heavy minerals are washed ashore to collect between headlands projecting out into the sea. Freeport's extraction concept intends to work with natural processes, removing sand in areas of accumulation to minimize visual impact. Importantly, annual tonnage for full scale production is minor in comparison to the volume of onshore and offshore sand at the site, with South Beach about 1.8 km and North Beach just over 2.2 km in length. As geologically 'young' deposits, formed after the last ice age, their garnet grains are quite angular, with few inclusions. Hutton garnet has performed well in many abrasive waterjet tests and is considered of a high quality. Target markets are eastern North America as well as Europe.
The company is also evaluating various long-term funding options, including 'angel investors' interested in development of projects in Newfoundland & Labrador, and is encouraging interested parties to contact Freeport directly.
Private Placement -----------------
The company is presently arranging a non-brokered private placement, with up to 1,000,000 flow-through shares at $0.11, with a non-flow-through warrant for a two-year term, at $0.15 in year one, and $0.25 in year two. The funds will be used towards the Hutton project, as well as several others in NL and BC. The private placement is expected to close before August 21, 2009, and is subject to regulatory approvals. The securities issued under this private placement are subject to a four month hold period from the closing date.
Zdenek Hora, M.Sc. P.Geo., is the qualified person who has reviewed this release. Freeport Resources, founded in 1981, is a junior mineral exploration company listed on the TSX Venture Exchange. Freeport has landholdings in Labrador and B.C., with a special focus on industrial minerals, precious and base metals, and gemstones. For more information, please visit our website at www.freeportresources.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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