80 Mile Plc (LSE:80M) has signed non-binding heads of terms with Canadian-listed Badlands Resources Inc. for the proposed sale of its Hammaslahti copper-zinc and Outokumpu copper-VMS exploration projects in Finland.
The proposed transaction includes CAD$1 million in staged cash payments, a 19.99% equity interest in Badlands Resources and up to CAD$4 million in additional payments linked to specified project development milestones.
The agreement covers the proposed acquisition of 100% of the Finnish projects by Badlands, subject to due diligence, regulatory approvals, shareholder approvals and the completion of definitive transaction documentation.
80 Mile said the proposed disposal forms part of its strategy to reduce commitments to non-core Finnish exploration assets while directing resources towards its operations in Greenland and Italy.
Proposed Transaction Includes CAD$1 Million in Cash and 19.99% Equity Stake
Under the non-binding heads of terms, Badlands Resources would acquire full ownership of the Hammaslahti and Outokumpu licence package.
The proposed consideration comprises staged cash payments totalling CAD$1 million and the issuance of shares representing 19.99% of Badlands’ share capital to 80 Mile or its subsidiary, FinnAust Mining Finland Oy.
The agreement also provides for contingent payments of up to CAD$4 million, dependent on the achievement of specified technical and development milestones.
These milestones relate to mineral resource estimates prepared in accordance with Canada’s NI 43-101 reporting standards and pre-feasibility study requirements at the two projects.
The additional payments are conditional and would only become payable if the relevant milestones are achieved under the terms of a definitive agreement.
The proposed transaction includes an exclusivity arrangement between the parties while they progress the necessary due diligence and transaction documentation.
No completed sale has been announced, and the terms remain non-binding at this stage.
Finnish Projects Recorded Losses Exceeding £2.3 Million in 2025
The assets included in the proposed disposal are located in established mining districts in Finland and comprise the Hammaslahti copper-zinc project and the Outokumpu copper volcanogenic massive sulphide (VMS) exploration licences.
Both projects have been subject to historical exploration activities, including geological mapping, geophysical surveys and drilling.
80 Mile holds the Finnish exploration interests through FinnAust Mining Finland Oy, which has operated in the country since 2010.
The company reported that the Finnish projects have a current book value of nil and generated losses exceeding £2.3 million during 2025.
The proposed disposal would transfer ownership of the projects to Badlands while allowing 80 Mile to retain financial exposure through its proposed equity interest and contingent milestone payments.
80 Mile said the transaction is intended to reduce its future development and funding commitments associated with the Finnish assets.
Greenland and Italian Operations Remain Strategic Priorities
80 Mile is pursuing a strategy focused on hydrocarbons and critical minerals in Greenland, alongside industrial gas and biofuels operations in Italy.
The company has identified these activities as priorities for capital allocation and operational development.
In Greenland, its portfolio includes the Jameson Project in East Greenland, covering approximately 8,429 square kilometres across three licences.
An independent assessment completed in 2025 estimated P10 recoverable oil resources of 13.03 billion barrels across the basin, with 80 Mile’s retained interest corresponding to approximately 3.9 billion barrels.
These figures represent resource estimates rather than confirmed production or commercially recoverable reserves.
The company also has a funding agreement with Greenland Energy Company covering two planned exploration wells, each targeting a depth of approximately 3,500 metres.
Alongside its Greenland interests, 80 Mile is developing its Italian industrial gas and biofuels activities as part of its wider energy portfolio.
The proposed Finnish asset sale would allow the company to concentrate its direct development activities on these operations while retaining an interest in the copper exploration projects through Badlands.
Completion Subject to Due Diligence and Regulatory Approvals
The proposed acquisition remains at the heads-of-terms stage and is subject to several conditions before it can proceed.
These include satisfactory due diligence, the negotiation and execution of definitive agreements, and any required regulatory and shareholder approvals.
If completed on the proposed terms, 80 Mile or FinnAust would receive CAD$1 million in staged cash consideration and a 19.99% shareholding in Badlands Resources, with the possibility of additional milestone-linked payments of up to CAD$4 million.
The equity component would provide continued exposure to the Finnish exploration assets through Badlands rather than direct ownership and operation.
80 Mile has not provided a confirmed completion date for the transaction.
Further announcements will be required to establish whether definitive terms are agreed and the conditions for completion are satisfied.
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