NewPeak Metals has announced the sale of its entire interest in its Finnish subsidiaries, NewPeak Finland (NFO) and Kultatie Holding (KHO), and its remaining 25% stake in its New Zealand Gold mineral permits.
These Finnish subsidiaries hold the Finland Gold permits.
Both the deals are part of the miner’s ongoing rejuvenation efforts to prioritise battery and critical metals.
As consideration for the sale, NewPeak will receive a total of A$150,000 ($98,160) and C$500,000 ($371,062) in cash, C$1,000,000 worth of shares of the listed company and a milestone payment of C$1,500,000 in cash or shares on reporting of a JORC (Joint Ore Reserve Committee) indicated 500,000oz gold resource.
The binding term sheet outlines the transfer of a portfolio of permits held by these subsidiaries, which includes the Hopeavouri, Hopeavouri 4, Isovesi, Järvenpää, Kalliojärvi, Lavajärvi and Metsäkylä permits under NFO, and the Luutasuo permit under KHO.
Additionally, KHO has an 83.3% share with Tammela Minerals in the joint venture company Kultatie, which holds the Somera and Peramaki permits.
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The sale is expected to provide immediate cash flow, as well as staged cash payments and tradeable shares over the short-to-medium term. These funds are intended to support the company’s future plans.
This transaction is structured to close by 31 March 2024, with most of the due diligence already completed.
NewPeak has indicated that the buyer, CANCO, may transfer its rights from the private company into a publicly listed Canadian entity by the time the transaction is finalised.
For sale of the New Zealand mineral permits, Garibaldi and Raggedy Range, NewPeak and its partner Neil Stuart signed an exploration permit acquisition agreement with KO Gold.
As consideration, NewPeak will get C$125,000 of KO Gold share issuances in three tranches.
