Freehill Mining Limited announced that regular deliveries of magnetite concentrate from its 100%-owned Yerbas Buenas magnetite mine in Chile have now commenced with first revenue to be received next month. The commencement of magnetite concentrates deliveries is a major milestone for Freehill transforming the Company into a revenue-generating mining business. Deliveries will be made on a daily basis going forward, underpinned by an off-take agreement with Compania Minera Del Pacifico S.A. which Freehill announced in May of this year.

CMP operates as a subsidiary of Chilean conglomerate CAP S.A. – Chile's larger iron ore producer. The commencement of regular deliveries follows the successful procurement of the requisite transport approvals, with magnetite concentrate being supplied from Freehill's existing inventory stockpiles which continues to be supported by ongoing production. Freehill has demonstrated the infrastructure and regulatory frameworks required to generate stable ongoing monthly revenues are robust following an exhaustive process involving both the project and transportation capabilities.

The commencement of regular magnetite concentrate deliveries and thus sales will generate regular cash flow for Freehill as it continues to develop Yerbas Buenas. Deal terms outlined in the first off-take agreement comprise the receipt of an initial total of 24,000 tonnes of magnetite ore, grading at 53% Fe. Further off-take agreements are likely to be agreed following delivery of this first tonnage.

As the Company establishes its position in the Chilean market as a reliable supplier of magnetite ore, negotiations with other prospective customers are advancing very favourably. In addition, negotiations with other domestic customers in relation to the sale of waste aggregate fines are well-advanced and likely to add another sales channel to Freehill in the near-term. During the exhaustive approval process Freehill and its production partner MTN also took the opportunity to review and upgrade its processing plant providing the Company with a high level of confidence in meeting desired production outcomes which the Company expects will be reflected through sales in the coming months.