NewPeak Metals (ASX:NPM) has signed a deal to sell its Finnish subsidiary, NewPeak Sweden Oy, which holds a portfolio of strategic mineral permits in Sweden.
Under the binding term sheet with private Canadian company CANCO, NewPeak Sweden Oy will be transferred to CANCO, which will then assign its rights to the permits to a publicly listed Canadian entity before the transaction closes.
As a result, NewPeak will receive C$250,000 ($274,810) worth of shares in the listed company, plus a further $750,000 in either cash or shares if an inferred resource of at least 3 million tonnes at 0.3% tungsten oxide equivalent is delineated.
Completion of the transaction is subject to usual standard arrangements, including CANCO satisfying due diligence and securing all relevant approvals.
NewPeak Chairman Brian Moller says the Swedish mineral assets came as a no-cost addition to the original acquisition of the Finnish gold projects.
“The company outlaid minimal funds on field exploration and resource evaluation, though was pleasantly surprised the results indicated such good potential,” he says.
“We are divesting the Sweden properties, as a part of the company’s rejuvenation plans, however NewPeak shareholders benefit from both the sale process and the exposure to any future project upside via our shareholding in the buyer.
“This completes the exit from Scandinavia, with only the Argentinian gold assets remaining for divestment. Discussions are underway, though we maintain our position that the Argentine gold assets have good potential, and we may progress them ourselves.”
On 20 February, NewPeak entered into a binding term sheet with CANCO to sell its interest in its Finnish subsidiary companies, which held gold permits in Finland.
The divestments form part of the company’s strategic ‘rejuvenation plan’, which NewPeak embarked on in early January 2024.
NewPeak started this ‘wholistic’ plan by trading out some of its mineral assets, including its gold permits in New Zealand and Finland. The company has since secured new exploration opportunities, focusing on battery and critical minerals, and freshened its board and management team.
Write to Aaliyah Rogan at Mining.com.au
Images: NewPeak Metals
