PERTH (miningweekly.com) – Nickel miner Western Areas has flagged the possibility of vending its Finnish exploration assets to Aim-listed Centurion Resources in exchange for shares in that company.
If Centurion shareholders approve the deal, the company will be renamed FinnAust Mining, with Western Areas holding a majority 68% stake in the enlarged entity.
The transaction will be combined with a £3.4-million equity raising, with Western Areas providing cornerstone support with £1.8-million of this capital.
Western Areas said on Thursday that following the raising, FinnAust would have sufficient capital to fund exploration activities over the next 18 months, with the company remaining focused on the high-grade copper and nickel targets in southern Finland.
Western Areas MD Dan Lougher said that the company was pleased to deliver on its objective of listing the Finnish assets on the London exchange.
“We believe our shareholders will be pleased to maintain exposure to the exciting drill targets we’ve identified for high-grade copper and nickel in Finland.
“We have found a like-minded and corporately sound party in Centurion for our Finnish exploration assets, where their CEO, Alastair Clayton, has had considerable success in mineral discoveries and corporate transactions over a number of years. We are pleased that Alastair will not be lost to the business, and will continue as an executive director of the enlarged company.”
Lougher will become chairperson of FinnAust, with Western Areas to have one further director on the FinnAust board, along with the two existing Centurion directors.
The FinnAust exploration rights will cover three main areas, namely Hammaslahti, Outokumpu and Enonkoski.