Shares in NewPeak Metals (ASX:NPM) have gone on a mad run today (12 April 2024) after the diversified junior explorer revealed to the market it has completed the paperwork required to sell its gold permits in Finland.
The company is selling its Finnish subsidiaries NewPeak Finland Oy (NFO) and Kultatie Holding Oy (KHY), which own the permits, to 1459992 BC – a Canadian unlisted private company.
The news sent shares up over 300% to an intra-day peak of $0.045 from Thursday’s (11 April 2024) close of $0.011. Some of the gains had been pared back by early afternoon, but the stock was still up over 190%.
NFO holds the Hopeavouri, Hopeavouri 4, Järvenpää, Lavajärvi, Metsäkylä, Isovesi and Kalliojärvi permits, while KHO holds the Luutasuo permit and has an 83.3% share with Tammela Minerals Oy – owned by Canadian company Nortec Minerals Corp – in joint venture company Kultatie Oy, which holds the Somera and Peramaki permits.
In exchange for the permits, NewPeak will receive C$1 million ($1.1 million) worth of stock in a Canada-listed entity and C$500,000 ($558,476) in cash.
1459992 BC has already paid an initial $150,000 deposit that it can elect to convert to NewPeak stock at $0.015 per share.
The company is set to receive a further C$1.5 million milestone cash payment on the definition of a 500,000-ounce JORC-compliant gold resource.
NewPeak says the deal is part of its “strategic rejuvenation plans” and will provide immediate cash as well as staged cash payments and tradeable shares over the near to medium term.
Write to Angela East at Mining.com.au
