Vancouver-based mining company, Outback Goldfields, has finalized a definitive agreement to acquire Sakumpu Exploration, the Finnish subsidiary of S2 Resources. This acquisition involves the transfer of S2’s gold project portfolio in Finland to Outback Goldfields.

In March 2024, Outback Goldfields signaled its interest in acquiring these Finnish gold projects through a letter of intent (LOI). Following a thorough due diligence process, both parties are now moving forward with the transaction, adhering to the terms outlined in the LOI.

As per the acquisition terms, Outback Goldfields will acquire Sakumpu Exploration for a total consideration of C$7 million. However, this transaction is subject to Outback completing a C$5 million non-brokered private placement, which was previously announced. The shares issued as part of the consideration will be valued at the same price as those offered in the private placement.

S2 anticipates that this deal will expedite the exploration of its gold assets in Finland, which it considers to be highly promising.

Chris Donaldson, CEO of Outback Goldfields, expressed excitement about the impending acquisition, stating, “We are thrilled to be nearing the completion of the transformative acquisition of S2’s promising projects in the Central Lapland Greenstone Belt of Finland. The projects we are acquiring are situated in a globally significant gold district, home to Agnico Eagle’s Kittilä Mine, Europe’s largest gold mine. Upon closing the transaction, Outback will have control over land housing a significant gold discovery, two separate joint ventures with Kinross Gold and Rupert Resources, as well as other strategically important 100%-owned assets.”