Outback Goldfields, a Vancouver-based mining company, has signed a definitive share purchase deal with S2 Resources to acquire its Finnish subsidiary, Sakumpu Exploration.

This move will result in the transfer of S2’s portfolio of gold projects in Finland to Outback Goldfields.

In March 2024, Outback Goldfields expressed its willingness to acquire these Finnish gold projects through a letter of intent (LOI).

The due diligence investigation has been completed, and both parties are now set to proceed with the transaction, adhering to the terms outlined in the LOI.

The acquisition terms stipulate that Outback Goldfields will take over Sakumpu Exploration for a total consideration of C$7m.

This amount includes C$1.5m in cash and C$5.5m in Outback Goldfields shares.

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The transaction is contingent upon Outback completing a C$5m non-brokered private placement, which was previously announced.

The shares to be issued as part of the consideration will be valued at the same price as those offered in the private placement.

S2 expects this deal to accelerate the exploration of the gold assets in Finland, which it says are “highly prospective”.

Outback Goldfields CEO Chris Donaldson said: “We are excited to be one step closer to closing the transformative acquisition of S2’s highly prospective projects in the Central Lapland Greenstone Belt of Finland.

“The projects we are acquiring are in a globally significant gold district hosting Agnico Eagle’s Kittilä Mine, which is Europe’s largest gold mine.

“Upon closing of the transaction, Outback will control ground which hosts an important gold discovery, two separate joint ventures with Kinross Gold and Rupert Resources along with other 100%-owned assets that are strategically significant.”