DiscovEx Resources (ASX: $DCX) announces transformational acquisition of gold-cobalt projects in Finland

DiscovEx Resources Limited (ASX: $DCX) has announced a transformational acquisition of gold-cobalt development projects in Finland, including an existing JORC 2012 Indicated and Inferred Mineral Resource at the KSB Project. The acquisition also encompasses significant exploration potential within regional tenure. The company's shares were placed into voluntary suspension on 11 March 2024, pending the release of an announcement regarding a transaction that will result in a change in its activities. Subsequent to the end of the quarter, the Company announced it had entered into a Bid Implementation Agreement (BIA) with Latitude 66 for the acquisition of all fully paid Ordinary shares in Latitude 66 by way of an off-market takeover bid under the Corporations Act 2001 (Cth) (Proposed Transaction).

Executive Commentary on the Acquisition

The proposed acquisition of Latitude 66 in Finland represents a significant milestone for DiscovEx Resources. It not only provides access to a substantial mineral resource but also positions the company to be a key supplier of locally sourced cobalt and other critical mineral products to the growing European battery market. This move aligns with the European Union's Critical Raw Materials Act requirements, which demand a percentage of critical raw materials to be mined within the EU. Finland's status as the only cobalt mining country in the EU further strengthens the strategic value of this acquisition.

Summary of the Announcement

DiscovEx Resources' acquisition of gold-cobalt projects in Finland marks a strategic shift in the company's activities, with a focus on becoming a significant supplier to the European battery market. The acquisition includes an existing JORC 2012 Indicated and Inferred Mineral Resource at the KSB Project and offers substantial exploration potential within regional tenure. The company also intends to conduct a capital raising under a full form prospectus to fund the Proposed Transaction and planned work programs. The addition of key personnel from Latitude 66 to the DCX Board and the intention to change the company's name to Latitude 66 Limited following the completion of the Proposed Transaction further underlines the significance of this move. With the European Union's emphasis on sourcing critical raw materials within its borders, this acquisition positions DiscovEx Resources to play a pivotal role in the European battery market.