Metals One acquires copper projects in Finland

Metals One () has entered into a binding term sheet to acquire FinnAust Mining Finland Oy from major shareholder 80 Mile PLC (AIM: 80M), formerly known as Bluejay Mining. 

80 Mile owns 17.29% of Metals One.

Metals One will acquire the assets for a consideration of £250,000 plus 10% of its enlarged share capital, following recent issues, to be allotted six months after the transaction completes. 80M will be subject to orderly market provisions in respect of the Consideration Shares for 12 months after completion.

80M will also retain any rights in respect of the extraction of industrial gasses under the Licences.

FinnAust Mining Oy holds the Hammaslahti copper-zinc project and the Outokumpu copper project in Finland.

Hammaslahti is prospective for volcanic massive sulphide mineralisation and contains the historical Hammaslahti mine which produced over seven million tonnes of ore at an average grade of 1.16% copper, 1.55% zinc, 0.59 grams per tonne gold and 5.2 grams per tonne silver between 1973 and 1986. 

Drilling by 80 Mile identified previously unknown extensions to the Hammaslahti mine mineralisation, with multiple intersections of high-grade massive sulphides. Examples of this extensional mineralisation include 3.4 metres at 11.5% copper and three parts per million gold.

The most recent diamond drilling programme in 2023 was successful in intersecting sulphide mineralisation in each of the eight holes drilled, with one occurrence at only 75 metres depth.

Drillhole HAM0008 returned a significant intersection of 5.7 metres of mineralisation grading 2.99% copper equivalent, including 2.1 metres at 6.31% copper equivalent.

Reinterpretations of the geophysical and geological data by 80M show significant potential for new mineralisation. Metals One intends to test this hypothesis with a follow-up drill programme later this year.

In excess of €3.8 million has been spent historically by 80M on drilling and exploration activities at Hammaslahti.

The Outokumpu project covers most of the northeast-southwest trending Outokumpu Ccopper Belt, which has produced several high-grade copper mines, including the world famous Outokumpu mine.

Six drill-ready targets have been identified by 80M, which Metals One believes have good potential for hosting high grade copper along strike from and immediately adjacent to the former operating mines.

Metals One intends to undertake higher-resolution geophysical surveys of the targets this year in preparation for a future drill programme.

Close to €2.5 million has been spent historically by 80M on exploration activities at Outokumpu.

"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 Jonathan Owen, chief executive of Metals One.

“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.” 

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A wealth of historical data, geophysical modelling and drilling core comes with this transaction, so Metals One will be able to hit the ground running. The company had a tough time of it in the latter part of 2024, but new financing arrangements, plus a reorganisation of the share structure have given it a boost lately, and the shares have recovered much of the ground lost since last summer. These new assets could provide further impetus for recovery, especially if the company can deliver more of high grade material the likes of which has already been encountered.