Nordic Nickel (ASX:NNL) entered into a binding agreement with Northgold to acquire the Kopsa, Kiimala Trend, and Hirsikangas gold projects by acquiring Northgold's Finnish subsidiaries, Fennia Gold and Lakeuden Malmi, according to a Friday Australian bourse filing.
It agreed to pay Northgold 70 million Nordic shares, as well as a cash payment of 2 million Swedish kroner.
The Kopsa gold-copper project is the largest and most advanced project being acquired. It is working to validate the entirety of the historical exploration database for the Kiimala Trend and Hirsikangas projects. The acquisition is expected to be completed around the end of May.
The issue of the consideration shares will lead to Northgold holding a stake of about 32% in Nordic.
The proposed transaction is subject to shareholder approval by both Nordic and Northgold at their respective general meetings slated for May.
Nordic has obtained irrevocable voting commitments to vote in favor of the proposed acquisition at the upcoming Northgold meeting from Northgold shareholders representing around 61.8% of its shares on issue.
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