© Latitude 66 Cobalt Oy
SunMirror to acquire Latitude 66 Cobalt Oy
SunMirror AG, a exploration company specialising in mineral resources such as gold, lithium, cobalt and other metals and minerals, has announced that it has, via its wholly owned subsidiary, SunMirror Luxembourg S.A. ("SM S.A."), agreed to acquire Finnish cobalt company Latitude 66 Cobalt Oy.
Founded 4 years ago, Latitude 66 is one of the leading explorers of cobalt in Europe and controls the largest exploration tenement package of any single company in Finland, currently in excess of 9,000 square kilometres. Latitude 66's most advanced mine development project is the fourth largest known cobalt deposit in the European Union ("EU") and the second largest not yet in production. In addition, Latitude 66 has an extensive exploration portfolio with over 100 targets identified for further exploration. The expected purchase price payable to the Parent will be EUR 45 million, payable in cash on closing, and SM S.A. has agreed to a 2% net smelter royalty on future production. The Board of Directors of SunMirror and the Board of Directors of Latitude 66's parent company Latitude 66 Cobalt Limited have already approved the sale of Latitude 66 to SM S.A. The conditional binding agreement in respect of the acquisition of Latitude 66 contains an alternative completion structure which, subject to satisfaction of certain conditions, provides SM S.A. with the ability to propose a takeover offer of the Parent in accordance with applicable Australian corporations laws. The completion of the acquisition of Latitude 66, or a takeover bid if one is subsequently announced by SM S.A., is subject to completion by SunMirror of a capital raising of EUR 70 million and other customary conditions. Current resource estimate for Latitude 66's K Camp project according to Mineral resource classification JORC is 16,490 tonnes cobalt and 725,000 oz gold contained. The average grade for cobalt is 0.064%, which is the highest of the five largest known cobalt resources in the EU, and the average gold grade is 2.7g/t. Finland is the largest refiner of cobalt and nickel in Europe and the second largest of cobalt in the world after China, which has a market share of around 80 percent. Furthermore Finland is currently the only country in the EU with mines producing Cobalt today. A fully European supply chain for batteries will significantly reduce CO2 and other emissions in the manufacturing process of electric vehicles and other batteries. Domestic supply of key battery minerals will significantly reduce strategic and geopolitical risks for European companies. SunMirror is targeting to supply the European economy with cobalt and other raw materials and metals such as lithium from sustainable, stable and legally secure sources, while complying with laws, regulations and ESG requirements. The EU recently affirmed, as part of the launch of its European Green Deal, that not having access to critical raw materials or being overly dependent on individual suppliers would undermine Europe's ability to become an industrial leader in new technologies. In order to achieve the EU's climate neutrality goal, it is important not to create a new dependency of these critical raw materials on uncertain third countries in terms of legal certainty, working conditions and environmental standards, a press release reads.