PERTH: Freehill Mining Limited’s wholly owned subsidiary, San Patricio Mineria SpA has executed a formal binding agreement with the vendor of the 750 hectare El Dorado Project, Minera El Dorado SCM, which grants San Patricio a three-month option to purchase these tenements that directly adjoin Freehill’s 67Mt Yerbas Buenas magnetite project.

El Dorado Project is highly prospective for magnetite, copper and gold mineralisation with recent rock chip reconnaissance sampling returning grades up to +45% Fe and 4.85% Cu and 22.8 g/t Au. Under the terms of the agreement, the option may be exercised by way of the issue of 75,000,000 consideration shares and the vendor is prohibited from dealing with or encumbering the tenements during option period.

The sale and transfer will take place in accordance with Chilean law and the procedures required by the La Serena Mining Registrar.

Chief Executive Officer Peter Hinner said: “While we have been busy advancing our Yerbas Buenas project that sow the Company significantly increase the magnetite resource and improve the overall grade, we have also been diligently progressing the El Dorado transaction which adds significant scale to our asset base in Chile.

“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. Ground magnetic Surveys and Induced Polarisation (IP) works will be undertaken to give us o 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.”