S2 Resources announces sale of Finnish subsidiary to Outback Goldfields

S2 Resources Ltd (ASX: $S2R) has signed a Letter Of Intent to sell its wholly-owned Finnish subsidiary, Sakumpu Exploration Oy, to Outback Goldfields for a total consideration of C$7 million, comprising C$1.5 million in cash and C$5.5 million in shares in Outback. The transaction is subject to Outback successfully undertaking a concurrent ~$5 million financing to fund exploration of S2 ground in Finland. S2 is expected to emerge with an estimated 35-45% shareholding in Outback post-planned C$5 million financing. The sale is also set to provide S2 with an option to earn majority interests in Outback's Victorian gold exploration projects. The transaction is subject to other shareholder and regulatory approvals.

Executive Commentary on S2 Resources' Sale of Finnish Subsidiary

The sale of our Finnish subsidiary represents a strategic move for S2 Resources, allowing us to bolster our cash reserves and focus on our core Australian projects. The transaction also ensures that our Finnish assets are more efficiently and aggressively explored, with Outback's focus on the exploration upside. Additionally, our significant shareholding in Outback will provide us with continuing exposure to the exploration potential of the Finnish ground position. This transaction aligns with our corporate strategy and will enable us to maintain material exposure to the exploration upside of the CLGB while concentrating our funds on Australian exploration activities.

Summary of S2 Resources' Sale of Finnish Subsidiary to Outback Goldfields

S2 Resources Ltd (ASX: $S2R) has entered into a Letter Of Intent to sell its wholly-owned Finnish subsidiary, Sakumpu Exploration Oy, to Outback Goldfields for a total consideration of C$7 million, comprising C$1.5 million in cash and C$5.5 million in shares in Outback. The transaction is subject to Outback successfully undertaking a concurrent ~$5 million financing to fund exploration of S2 ground in Finland. S2 is expected to emerge with an estimated 35-45% shareholding in Outback post-planned C$5 million financing, providing significant continuing exposure to the exploration upside of S2's Finnish ground position. The sale also grants S2 an option to earn majority interests in Outback's Victorian gold exploration projects. The transaction is subject to other shareholder and regulatory approvals, with a definitive agreement anticipated to be completed on or around 6th April 2024. This strategic move is set to enhance S2's cash reserves, focus on core projects, and maintain exposure to exploration potential, aligning with the company's corporate strategy.