Metals One has signed a share purchase agreement with 80 Mile to acquire the entire issued share capital of FinnAust Mining Finland, a special purpose vehicle (SPV).
The SPV holds several licences including the Hammaslahti copper-zinc project and the Outokumpu copper project in Finland, both of which are associated with historic copper mines.
The acquisition will expand Metals One’s exposure to copper in a Tier-1 jurisdiction.
80 Mile will retain all rights to any industrial gases, including helium and hydrogen, associated with the projects.
Metals One plans to drill test Hammaslahti later this year after identifying significant sulphide mineralisation and will advance geophysical surveys at Outokumpu in preparation to drill.
Metals One CEO Jonathan Owen said: “This is an exciting time for Metals One. With the backing of new investors, the company is preparing to advance these two highly prospective copper exploration projects. Considering the historical expenditure on the licences, we believe significant value appreciation can be achieved with relatively modest exploration spend.”
Board changes are anticipated following the completion of the transaction. 80 Mile will have the right to appoint a director to the board of Metals One, provided it holds at least 10% of the voting rights.
The transaction is pending consent from the net smelter royalty holders on the licences and regulatory approval in Finland, which is not currently expected to be formally required.
80 Mile managing director Eric Sondergaard said: “This divestment marks a key milestone for 80 Mile as we sharpen our focus on emerging energy commodities, particularly industrial gases.
“While the copper assets in Finland hold strong potential, our retained rights over industrial gases allow us to continue participating in any upside from future discoveries in this evolving sector.”
The Hammaslahti project is known for its volcanogenic massive sulphide mineralisation, with historical production yielding significant amounts of copper, zinc, gold and silver.
Drilling by 80 Mile has revealed extensions to the ore body, with high-grade massive sulphides identified.
The Outokumpu copper project is situated along the Outokumpu Copper Belt, with six drill-ready targets identified that could potentially host high-grade copper deposits adjacent to the former operating mine.
In July 2021, Bluejay divested its Paltamo and Rautavaara nickel, zinc, copper and cobalt projects in Finland to Metals One.
