- Freehill Mining (FHS), through its subsidiary San Patricio Mineria SpA, has completed its acquisition of the El Dorado Project in Chile
- Under the terms of the deal, which was announced on June 11, 2020, the company issued 75 million shares to the previous owner Minera El Dorado SCM
- The property sits immediately next to Freehill's existing Yerbas Buenas Project and expands the company's total landholding in the region to roughly 1250 hectares
- Previous exploration work shows that the project is highly prospective for magnetite, copper and gold mineralisation
- Shares in Freehill Mining are steady in early trade, worth 7 cents each
Freehill Mining (FHS), through its subsidiary San Patricio Mineria SpA, has completed its acquisition of the El Dorado Project in Chile.
The 750-hectare property sits roughly 500 kilometres north of the capital Santiago, immediately adjacent to the company's existing 67-million-tonne Yerbas Buenas magnetite project, and expands Freehill's total landholding in the area to approximately 1250 hectares.
Under the terms of the agreement, which was announced on June 11, 2020, the company issued 75 million fully paid ordinary shares to Minera El Dorado SCM in exchange for the acquisition. The transaction supported by more than 99.5 per cent of Freehill's shareholders in a meeting on July 28.
According to previous exploration data, the El Dorado Project is highly prospective for magnetite, copper and gold mineralisation, and offers access to an additional four-kilometre stretch of the Atacama-El Tofo fault zone.
Around seven kilometres to the northeast lies the Higuera region, which hosts a number of copper mines and resources, while 22 kilometres to the north sits Andes Iron's $1-billion Dominga copper-iron project.
There are also three copper-gold concentrating plants located within 30 kilometres of the El Dorado Project, each of which have active environmental permits in place.
Peter Hinner, CEO of Freehill Mining, said the El Dorado Project is without doubt a highly valuable and prospective asset that adds considerable value to the company's portfolio.
"Acquiring quality projects in and around Yerbas Buenas is a key part of our growth strategy with El Dorado representing the first such opportunity," Peter stated.
"Exploration activity is now well underway and we look forward to reporting on results from ongoing sampling programs very soon," he added.
Shares in Freehill Mining are steady in early trade, worth 7 cents each at 10:43 am AEDT.