Metals One agrees to buy FinnAust Finland from 80 Mile

The AIM-traded firm said the acquisition, which was conditional on the execution of a sale and purchase agreement and completion of an equity fundraise, would expand its Nordic footprint and increase its exposure to copper, a key metal in high demand.

It said the Hammaslahti project, which hosts the historical Hammaslahti mine, was prospective for volcanogenic massive sulphide mineralisation.

The mine produced over seven million tonnes of ore at an average grade of 1.16% copper, 1.55% zinc, 0.59 grams of gold and 5.2 grams of silver per tonne between 1973 and 1986.

Drilling by 80 Mile had identified high-grade extensions to the deposit, including intersections of 3.4 metres at 11.5% copper and three parts of gold per million.

A 2023 drilling programme confirmed further sulphide mineralisation, with one drill hole returning 5.7 metres at 2.99% copper-equivalent, including 2.1 metres at 6.31% copper-equivalent.

Reinterpretation of geophysical and geological data suggested significant exploration potential, which Metals One planned to test through further drilling later this year.

The Outokumpu Copper Project covers the Outokumpu Copper Belt, which historically produced high-grade copper deposits, including the Outokumpu mine, which yielded 28.5 million tonnes at 3.8% copper between 1908 and 1988.

Six drill-ready targets had been identified, with Metals One planning higher-resolution geophysical surveys this year to refine targets for a future drilling campaign.

According to management estimates, 80 Mile had invested about €3.8m in exploration at Hammaslahti and €2.5m at Outokumpu.

Metals One said it saw the projects as highly prospective and intended to advance exploration to unlock their resource potential.

“The strong demand and tightening supply dynamics in the copper markets have created an opportunity for Metals One as we already have boots on the ground in Finland and the ability to advance these projects efficiently and in the near-term, while allowing 80 Mile Plc to focus on its other activities,” said chief executive officer Jonathan Owen.

“With financing now in place, Metals One is in a position to acquire and progress previously screened projects such as these, and apply the resources needed to bring them to fruition.

“The board has considerable knowledge of these assets and believes that with a disciplined, phased exploration programme it can unlock their potential for the benefit of Metals One shareholders.”

Owen said to that end, there was a “wealth” of historical data, geophysical modelling and drilling core that came with the transaction, giving the company a high level of confidence in the exploration plan ahead.

“The next steps will include planning and contracting for a drilling campaign at Hammaslahti and geophysical studies at Outokumpu.”

At 0943 GMT, shares in Metals One were up 2.22% at 0.92p.

Reporting by Josh White for Sharecast.com.