TORONTO – Fredonia Mining Inc. (formerly Richmond Road Capital Corp.) (TSXV: FRED) reported that further to the press release issued on June 28, 2021 in respect of the subscription receipt financing of $6.4 million, the escrow release conditions under the Offering have been satisfied and Fredonia has received approval from the TSX Venture Exchange to list its common shares on the TSXV under the symbol “FRED”, with trading to commence on Wednesday, July 14, 2021. At the request of TSXV, an additional 10,138,837 shares issued in 2017 pursuant to the acquisition of the El Dorado project will be subject to Tier 2 value escrow.
“In parallel with the completion of our listing process, our team in Argentina has been calibrating our strategies and timelines for the upcoming drilling campaign,” said Estanislao Auriemma, Chief Executive Officer of Fredonia Mining Inc. “We expect to finalize all permitting in the upcoming weeks and to be drilling per our plan at our primary targets with a view to have initial results within 120 days.”
The Company’s immediate drilling program will encompass a total of 6,000 meters of drilling in two tranches, with the initial 3,000 meters commencing as early as August 2021 at its Monserrat Oeste and La Herradura targets, in EDM.
The EDM property is located in an area of low rolling hills in the Deseado Massif of Santa Cruz Province, close to a number of known mines and prospects. Santa Cruz Province is part of the region of Patagonia which has the Andes Mountains to the west and the Atlantic coast to the east. In general, the area is very sparsely populated, and a large proportion of employment is in sheep farming which is managed from widely scattered ‘estancias’. However, in 2011 sheep farming was the second ranking economic activity in this area, as oil, gas and mining (coal and gold) overtook agriculture, giving Santa Cruz the highest GDP per capita in Argentina.
The nearest major centres to the Fredonia licences are Puerto Deseado (population 10,000), Puerto San Julian (population 6,000) and Comodoro Rivadavia (population 140,000). Rio Gallegos (population 79,000), the capital of Santa Cruz Province, lies to the south of the project areas. The major centres can provide basic goods and services, and the national power grid serves these centres. Comodoro Rivadavia and Rio Gallegos are serviced with national airports. A well-maintained concrete airstrip is located at Puerto Deseado, serviced via small to mid-size charter aircraft. Workers are readily available from the surrounding area.
There is reasonable access to the region, with numerous tracks accessible to four-wheel drive vehicles. However, apart from the major paved north-south highway 3 in the east of the province and the east-west highway 43 in the northern part of the Massif, highways are unpaved and may be in poor condition though are readily accessible. Tracks may become temporarily impassable after rain, but work can continue throughout the year.
Fredonia plans to conduct a comprehensive exploration program to enable the further assessment of the potential of the El Dorado-Monserrat Property. Initially, improvement to access and re-establishing the camp at the Monserrat homestead will enable completion of the Environmental Impact Assessment report ahead of exploration drilling.
The EDM Project area is considered to contain significant potential and the drilling, trenching and surface exploration conducted on the prospects by prior operators are adequate to demonstrate the overall potential of the property.
The Deseado Massif is a tectonic block that comprises Jurassic and Cretaceous volcanic outpouring, containing two important geological groups: the Bajo Pobre and Chon Aike both of which are prospective for low sulphidation epithermal style gold-silver mineralization, such as being exploited at the Cerro Vanguardia gold-silver mine.
The property contains other prospects which are interpreted as prospective on the basis of drilling so far conducted, and several other prospects with identified structures containing significant gold-silver values in rock chip, channel and drill samples.
We seek Safe Harbor.