DiscovEx Resources to transform portfolio with acquisition of Finland-based Latitude 66 Cobalt

DiscovEx Resources (ASX: DCX) has announced the transformational acquisition of private Australian company Latitude 66 Cobalt, which owns a suite of gold-cobalt development projects in Finland.

The assets sit in tier 1 mining jurisdictions and include the third-largest undeveloped cobalt resource in the European Union (EU).

The proposed acquisition will comprise one granted mining lease, six granted exploration permits, 60 exploration application permits and one exploration reservation permit across five project areas.

It includes Latitude’s flagship KSB project along Finland’s Kuusamo Schist Belt, which hosts an indicated and inferred resource of 7.3 million tonnes grading 2.7 grams per tonne gold and 0.08% cobalt for a contained 650,000 ounces of gold and 5,800t of cobalt.

Bid implementation agreement

The off-market takeover will see DiscovEx acquire all of Latitude’s ordinary shares by way of a bid implementation agreement, whereby Latitude investors will receive 0.88 DiscovEx shares for every one Latitude share held.

The current board of DiscovEx has recommended the deal and each board member has confirmed they will vote all of their shares in favour.

Majority shareholder Capricorn Metals (ASX: CMM) has also committed to vote in favour of the transaction.

DiscovEx intends to raise up to $4m via a public offer of fully paid ordinary shares, subject to shareholder approval.

On completion of the agreement, DiscovEx will change its name to Latitude 66.

Significant tenement portfolio

DiscovEx managing director Toby Wellman said the company was keen to take ownership of Latitude’s projects.

“Over the past seven years, Latitude has acquired a significant tenement portfolio in Finland, predominantly focused on gold and cobalt,” he said.

“Its flagship KSB project already contains 650,000oz of gold and is the third-largest undeveloped cobalt resource in the EU.”

“This acquisition will give us exposure to an emerging critical minerals demand that is gaining momentum across the globe and provides leverage into one of the largest critical minerals regions in Europe.”

“It will be a springboard to take our company to the next level.”

Finnish success story

Latitude 66 was established in 2017 to acquire, explore and develop polymetallic opportunities in Finland, including the KSB project, through subsidiary Latitude 66 Cobalt Oy.

The company has since accumulated one of the largest exploration land holdings in Finland, measuring approximately 1,000 square kilometres.

Latitude 66 has unlocked the potential of the country’s Kuusamo Schist Belt, Peräpohja Schist Belt, Kainuu Schist Belt and Central Lapland Greenstone Belt with greenfields and more advanced discoveries to significantly increase its gold and cobalt mineral resource inventory.

Established region

Finland is an established mining destination and home to multiple operations and processing facilities, including Europe’s largest gold mine at Kittilä, owned by Agnico Eagle Mines.

Kittilä has a 6.3Moz contained resource from a proven ore reserve of 0.98Mt grading 4.1g/t gold, a probable 25.9Mt at 4.1g/t, a measured resource of 4.3Mt at 2.9g/t, an indicated resource of 13.6Mt at 2.9g/t and an inferred total of 6.6Mt at 5.1g/t.

Recent exploration by Rupert Resources at the Ikkari project — which has an indicated resource of 58.4Mt grading 2.18g/t gold and an inferred 3.6Mt at 1.18g/t gold for 4.2Moz — is believed to have highlighted the country’s potential to host multi-million-ounce gold discoveries.

Finland has significant downstream refining capacity, being the world’s largest refiner of cobalt outside of China.