TSX.V: OZ | OTCQB: OZBKF | FSE: S600
In addition, Outback will grant S2 an option (the "Joint Venture Earn-In") to earn an interest in Outback's Glenfine,
"This is a transformative acquisition for Outback, providing our company with a world-class portfolio of projects in a highly prospective jurisdiction," commented
Concurrent with the Transaction, Outback intends to complete a financing to raise gross proceeds of
Transaction Highlights:
- Creation of a new Canadian-listed Finnish exploration company: Canadian-listed explorers are leading the exploration frontier in
Finland with Rupert Resources Ltd., Aurion Resources Ltd., andFireFox Corp. boasting a combined market capitalization of approximatelyC$700 million . - Large land position in a premier district: The S2 Finnish Projects comprise an over 35,000-hectare land package in
Northern Finland's Central Lapland Greenstone Belt, which is host to world class gold and nickel-copper-cobalt-PGE deposits, including Agnico Eagle's 3.7 million ounce Kittilä gold mine1, Rupert's 4.1 million ounce Ikkari gold deposit2, Boliden's 247 million tonne Kevitsa copper-nickel-gold-PGE mine3 and Anglo American's 44 million tonne Sakatti nickel-copper–PGE deposit4. - Strategic partnerships in
Finland : Senior gold producer Kinross Gold and marquee explorer Rupert Resources are currently funding approximatelyC$14 million of exploration work pursuant to farm into agreements on 12,000 hectares of regional ground, while Outback will maintain 100% ownership of the Paana, Ruopas, Putaanperä, Rova and Pahavuoma projects. - Defined high-grade gold target: The Aarnivalkea West discovery on the Paana project represents an open-ended, 1.3 km striking zone of near-surface, orogenic gold mineralization. This target will be a priority area for future exploration programs conducted by Outback.
- Strong balance sheet to execute growth: Concurrent
C$5 million financing will fund Outback to advance drill-ready targets. - Experienced leadership team: The board and management team of Outback have decades of experience, with a demonstrated track record of exploration and the support of
Inventa Capital Corp. , aVancouver -based merchant bank founded in 2017 with the goal of discovering and funding opportunities in the resource sector. - Continued exposure to Victorian Goldfields: S2 is a proven successful explorer and controls one of the largest landholdings in the greater
Fosterville area, making S2 well placed to move the Outback Australian Projects forward. Outback will retain minority interests in the Outback Australian Projects.
The S2 Finnish Projects comprise over 35,000 hectares in the prospective Central Lapland Greenstone Belt ("CLGB") of northern
The Aarnivalkea West target, on the
Most of the deeper holes intersected zones of broad and/or high-grade gold mineralisation, highlighted by intervals such as:
- 65.4 metres at 1.5 g/t Au including 6.8 meters at 11.8 g/t Au from 164.5 metres down hole (FAVD62)5
- 55.5 metres at 1.6 g/t Au including 20.4 metres at 4.0 g/t Au from 158.0 metres down hole (FAVD64)5
- 79.6 metres at 0.76 g/t Au including 16.8 metres at 2.7 g/t Au from 123.0 metres and 48.0 metres at 0.96 g/t Au including 7.9 metres at 3.98 g/t Au from 214 metres down hole (FAVD71)6
- 30.5 metres at 1.9 g/t Au including 9.5 metres at 5.2 g/t Au from 32.2 metres down hole (FAVD40)7
Mineralisation at Aarnivalkea West is associated with intense albite-sericite-carbonate alteration, with abundant disseminated sulfide and multi-generational deformed quartz veins. Gold mineralisation at the Aarnivalkea West target is open at depth, down-dip to the east, and along strike to the north and south. Outback's preliminary focus at Aarnivalkea West, will be aimed at targeting structural and lithological controls on higher-grade zones as well as investigating the down-dip and strike-extent of near-surface mineralization with an initial approximately 3,000 metre drill program.
Reconnaissance scout drilling was also conducted at the Aarnivalkea East target in 2021, 2.4 km east of Aarnivalkea West, to test a multi-element (Au-As-Sb) base of till (BoT) anomaly. Thirteen wide spaced, shallow holes (average 100 metres depth) confirmed the presence of a strongly altered and deformed shear zone with multiple zones of local gold mineralisation highlighted by an intercept of 3.7 metres at 0.86 g/t gold from 85.0 metres in hole FPAD00058. Similar to Aarnivalkea West, the East target warrants systematic and deeper follow-up drill testing.
Soil sampling across other prospective projects north of Paana (e.g., Rova and Pahasvuoma projects, Figure 1) has previously returned broad multi-element (Au-Cu-Sb-As-Ag) geochemical anomalies9. These targets are considered prospective for orogenic gold mineralization. Surface geochemistry at the Putaanperä project, approximately 40 km northeast of Rupert Resources Ikkari gold discovery (Figure 1), reveals a broad Au-Ag-As-Cu anomaly9 spatially associated with the regionally important Sirkka shear zone. These results suggest strong prospectivity for orogenic gold mineralization across the Putaanperä project.
The Ruopas project, 60 km south of Paana and the Aarnivakea gold prospects (Figure 1), was previously explored for the presence of magmatic nickel-copper-PGE mineralization via ground electromagnetic surveys.
In
In
In
A press release with further information in respect of the S2 Subsidiary and the S2 Finnish Projects, including significant financial information, will follow in accordance with the policies of the TSXV.
The Letter of Intent contemplates that Outback and S2 will negotiate and enter into a definitive agreement in respect of the Transaction (the "Definitive Agreement") pursuant to which Outback will acquire S2's Finnish portfolio for total consideration of
In connection with the Transaction, Outback intends to complete a non-brokered private placement for minimum gross proceeds of
The completion of the Transaction remains subject to a number of terms and conditions, among other standard conditions for a transaction of this nature, including, among other things: (i) the negotiation and execution of the Definitive Agreement; (ii) completion of the Offering; (iii) approval of the shareholders of Outback and, if required, the shareholders of S2; (iv) the preparation of a NI 43-101 compliant technical report for each of the material S2 Finnish Projects that is acceptable to the TSXV and Outback; (v) the receipt of all required regulatory, stock exchanges (including the TSXV), creditor, court, security holder and other approvals, consents, permits, waivers, exemptions and orders; and (vi) if required by the TSXV, delivery of a sponsor report. There can be no assurance that all of the necessary regulatory and shareholder approvals will be obtained or that all conditions of closing will be met.
Upon completion of the Transaction, S2 will be granted the right to appoint one member to the board of directors of Outback (the "S2 Nominee"). S2 has not yet identified any potential S2 Nominee. Other than the appointment of a potential S2 Nominee, the directors and officers of Outback are not expected to change.
In addition, it is expected that S2 will become an Insider of Outback upon completion of the Transaction and the Offering. S2, an Australian entity, is a public company listed on the
Sponsorship of the Transaction may be required by the TSXV unless an exemption or waiver from this requirement is obtained in accordance with the policies of the TSXV. Neither Outback nor S2 has yet engaged a sponsor in connection with the Transaction. The parties intend to apply for an exemption from the TSXV's sponsorship requirement. Additional information on sponsorship arrangements will be provided once available.
In addition, Outback and S2 have entered into a separate binding letter of intent with respect to the Joint Venture Earn-In, pursuant to which S2 may, over a 48 month period, earn (i) an 80% joint venture interest in the Outback Australian Projects by incurring
The Transaction is not a "related party transaction" as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and is not subject to Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSXV. In addition, the Transaction will constitute an "Arm's Length Transaction" (as such term is defined in the policies of the TSXV).
No finder's fees are expected to be payable in connection with the Transaction.
If required under TSXV policies, Outback will obtain shareholder approval for the Transaction.
In accordance with the policies of the TSXV, trading of the common shares of Outback has been halted as a result of this announcement and will not resume trading until such time as the TSXV determines, which, depending on the policies of the TSXV, may not occur until completion of the Transaction.
Additional information concerning the Transaction, the S2 Subsidiary, the S2 Finnish Projects and the Offering will be provided once determined in subsequent news releases and in the disclosure documents to be prepared by Outback in connection with the Transaction. Such documents will be available in due course under Outback's SEDAR+ profile at www.sedarplus.ca.
The disclosure of technical or scientific information in this press release has been reviewed and approved by Dr.
The reader is cautioned that the historical drill results are based on prior data and reports prepared by S2. The reader is cautioned not to treat them, or any part of them, as current and that a qualified person has not done sufficient work to verify the results and that they may not form a reliable guide to future results. The Company considers these historical results relevant as it is using this data as a guide to plan exploration programs. No independent QA/QC protocols are known for these drilling activities and as such analytical results may be unreliable. The Company's future exploration work will include verification of the historical data through drilling.
Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the S2 Finnish Projects.
1. Agnico Eagle website (agnicoeagle.com),
2. Rupert Resources website (rupertresources.com),
3. Boliden website (boliden.com),
4. Anglo website (anglo.com),
5. Data reported in S2 Resources
6. Data reported in S2 Resources
7. Data reported in S2 Resources
8. Data reported in S2 Resources Annual Report 2021 (s2resources.com.au).
9. Data reported in S2 Resources
Outback is an exploration mining company that is actively exploring its package of highly prospective gold projects. Outback is backed by
Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Outback should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Neither the
This news release contains forward-looking statements or forward-looking information relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements in this news release include but are not limited to: obtaining the necessary approvals required for the Transaction and the Offering; completion of the Transaction and the Offering and the timing thereof; final terms of the Transaction and Offering; the benefits of the Transaction and the Offering; and exploration activities.
Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the benefits of the Transaction and the Offering; the Company's ability to carry on exploration and development activities; the timely receipt of required approvals; the price of metals; the integration of assets acquired by the Company; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include but are not limited to: the Company's early stage of development; the fluctuation of the price of metals; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; environmental risks and hazards; risks associated with negative operating cash flow; and risks associated with dilution. For a further discussion of risks relevant to the Company, see the Company's other public disclosure documents.
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as, and to the extent required by, applicable securities laws.
SOURCE
© Canada Newswire, source