FMR Secures 60% JV Interest and Raises $2.2M for Chile Copper Project

Strategic JV Unlocks Chilean Copper Potential

FMR Resources Limited (ASX, FMR) has taken a significant step towards expanding its copper-gold exploration footprint by entering into a conditional binding term sheet to earn up to a 60% interest in the Llahuin Project, located in central Chile. This joint venture with Southern Hemisphere Mining Ltd (SUH) targets a highly prospective copper-gold-molybdenite porphyry system that remains largely untested at depth.

The Llahuin Project hosts a compelling Southern Porphyry Target, identified through coincidental geophysical and geochemical anomalies, including magnetic, induced polarization, and magnetotelluric resistivity data. These datasets suggest a large, circular porphyry stock approximately 1,000 meters below surface, spanning 1.5 to 2 kilometers in diameter. Historic shallow drilling has confirmed mineralisation above this target, but the core remains unexplored, setting the stage for potentially transformative discovery drilling planned for Q4 2025.

Capital Raise and Leadership Bolster Growth Prospects

To fund this ambitious exploration program and support ongoing operations, FMR has secured firm commitments for a $2.2 million placement at $0.16 per share, representing a modest discount to recent trading prices. The placement will be conducted in two tranches, with shareholder approval sought for the second tranche and associated securities. This capital injection not only strengthens FMR’s balance sheet but also signals market confidence, underscored by the entry of veteran resources investor Mark Creasy as a major shareholder.

Complementing this strategic move, FMR has appointed Oliver Kiddie as Managing Director. With over two decades of international experience in base metals and gold exploration, resource definition, and project development, Kiddie brings a proven track record of discovery and corporate leadership. His appointment aligns with FMR’s growth ambitions and the imminent drilling campaign at Llahuin.

Robust Project Fundamentals and Next Steps

The Llahuin Project benefits from excellent infrastructure proximity, including roads, electricity, and nearby ports, situated in a recognized Chilean mining district. Extensive historical drilling and geophysical surveys have delineated multiple mineralised zones along a 6-kilometer corridor, with the Southern Porphyry Target representing a new frontier. Metallurgical test work indicates favourable recoveries for copper, gold, and molybdenum, enhancing the project's economic potential.

FMR’s immediate focus will be on detailed geophysical reprocessing and modelling to refine drill targets, followed by tendering for drilling contractors. The company aims to commence Phase I drilling in October 2025, with the objective of testing the core of the Southern Porphyry Target and advancing towards a company-making discovery.

Transaction Structure and Shareholder Engagement

The earn-in agreement requires staged expenditure commitments, including a minimum $3 million spend over two years with at least 6,000 meters of drilling, and an option to increase interest to 60% through additional payments and funding. FMR will collaborate closely with SUH’s technical teams during the earn-in period. The company plans to hold a general meeting in late July or early August 2025 to seek shareholder approvals for the placement and related securities issuance.

Overall, this transaction and capital raise mark a pivotal moment for FMR Resources, positioning it to unlock significant value from a world-class copper-gold province while strengthening its leadership and financial foundation.