S2 Resources (ASX:S2R) has entered into a definitive share purchase agreement with Vancouver-based Outback Goldfields (TSX-V:OZ) for the sale of its Finnish subsidiary Sakumpu Exploration.
Under the agreement, Outback Goldfields will pay C$7 million ($7.73 million), consisting of C$1.15 million in cash and C$5.5 million in Outback shares.
S2, which has a market capitalisation of $54.34 million, holds a 586km2 area in the Central Lapland Greenstone Belt of northern Finland.
The areas have not been extensively explored but are considered prospective for gold and nickel-copper-cobalt-platinum group element deposits.
The transaction remains subject to Outback completing a C$5 million financing, satisfying various conditions, and gaining shareholders approval.
Both companies are working together to conclude the transition, which S2 says “will result in a focused and expedited exploration program for the Finnish assets.”
S2 Resources is a gold and base metal-focused explorer with assets across Australia.
Outback Goldfields is focused on exploring for gold in the Victorian Goldfields. The company has four key assets across Victoria, Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: S2 Resources
