80 Mile (AIM:80M) announced it has entered into non-binding heads of terms to sell its Finnish licence package to Badlands Resources (TSX-V:BLDS).
The AIM-listed explorer said the proposed disposal covers the Hammaslahti copper-zinc project and the Outokumpu copper-volcanogenic massive sulphide project, both held through wholly owned subsidiary FinnAust Mining Finland Oy.
Badlands will pay CAD$1m in cash, split evenly between completion and 12 months after the definitive agreement is signed, plus a share issuance equal to 19.99% of Badlands' undiluted issued capital at completion.
80 Mile will also hold a top-up right to preserve that stake through Badlands' next financing round and again 18 months after completion.
A further CAD$4m of contingent consideration is attached to four milestones, CAD$1m each, tied to National Instrument 43-101 resource estimates of at least 5m tonnes grading 1.5% copper and positive pre-feasibility studies at both Hammaslahti and Outokumpu, payable in cash, Badlands shares, or a combination at Badlands' discretion.
80 Mile will receive exclusivity payments of CAD$25,000 on signing the heads of terms and a further CAD$25,000 on execution of the definitive agreement, with binding 45-day exclusivity and non-solicitation running from 16 October.
Hammaslahti is built around the historic Hammaslahti mine, which produced more than seven million tonnes of ore between 1973 and 1986 at reported average grades of 1.16% copper, 1.55% zinc, 0.59 g/t gold and 5.2 g/t silver; subsequent 80 Mile group drilling returned intercepts including 3.4 metres at 11.5% copper and a 2023 hole of 5.7 metres at 2.99% copper equivalent.
Outokumpu sits on the Outokumpu Copper Belt next to the historic mining centre, where six drill-ready targets have previously been identified.
80 Mile said the Finnish assets carry no near-term development budget within its current work programme, and framed the deal as monetising non-core exploration ground while it concentrates capital on Disko-Nuussuaq in Greenland and the Greenswitch biorefinery in Italy.
Read more about 80 Mile and 80 Mile
- 08/09/2680 Mile agrees indicative all-share merger terms with Greenland Energy
- 13/07/2680 Mile begins drilling at Disko-Nuussuaq nickel project
- 03/07/2680 Mile executive becomes managing director for Greenland JV partner
- 01/07/2680 Mile starts drilling at Greenland nickel-copper project
Cash proceeds on completion are earmarked for general working capital and the company's priority Greenland and Italian projects, while the Badlands shareholding and milestone ladder are intended to preserve upside if the Finnish projects advance toward a resource estimate or pre-feasibility study under new ownership.
Rod McIllree, executive director of 80 Mile, said the deal places Hammaslahti and Outokumpu "into a dedicated copper vehicle while maintaining a near-20% listed interest and a CAD$4 million milestone ladder if the new operator takes either project through resource and/or study."
The proposed transaction remains conditional on due diligence, negotiation of definitive agreements, TSX Venture Exchange approval, any required shareholder approvals and no material adverse change at FinnAust or the projects before completion.