Magnusson acted as legal advisor to Northgold AB, a Swedish company listed on Nasdaq First North Growth Market, in recent landmark transaction involving sale of its Finnish subsidiaries, Fennia Gold Oy and Lakeuden Malmi Oy

Magnusson played an invaluable role as the Finnish legal advisor for Northgold AB in a share transaction concerning the planned divestment of both its Finnish subsidiaries, Fennia Gold Oy and Lakeuden Malmi Oy, to Nordic Resources Limited. The transaction, which represents a strategic initiative to accelerate project development and enhance operational efficiency, involved the transfer of Northgold’s key assets, including the Kopsa, Hirsikangas, and Kiimala Trend projects. 

The transaction is based on a consideration consisting of 70,000,000 fully paid ordinary shares in Nordic Resources Limited and a cash payment of SEK 2,000,000. In total, the consideration has a value of approximately 34 MSEK, based on the volume-weighted average price of Nordic Resources calculated over the last 15 trading days and the current exchange rate between the Australian Dollar and the Swedish Krona. 

Completion of the transaction is subject to approval by Extraordinary General Meetings in both Northgold AB and Nordic Resources Limited. It is also subject to customary closing conditions, as well as a capital raising by Nordic Resources Limited. The completion of the transaction is expected to occur on or around 29 May 2025.  

Following completion of the transaction, Northgold AB plans to proceed with an orderly winding-up by proposing at a general meeting that Northgold AB enters into voluntary liquidation and that the consideration shares and any excess cash be distributed to the shareholders as a distribution in liquidation.  

Northgold AB is a Nasdaq First North-listed Swedish gold exploration and development company. The buyer, Nordic Resources Limited, is an Australian-listed mineral exploration and development company focused on the Nordic region. 

Magnusson’s team provided expert legal advice and support to Northgold AB throughout the project, covering areas such as contract negotiations, assistance in the legal due diligence process, and drafting the relevant documents and agreements. 

“Magnusson’s accuracy and efficiency in handling our projects have been remarkable since the beginning of our partnership, ensuring that each matter is completed with precision and timeliness. We highly value their professionalism, efficiency and commitment to excellence and would recommend them to any organisation seeking a reliable partner,” comments Roberto Garcia Martinez, Chairman of the Board of Northgold AB. 

Magnusson’s Partner, Head of ESG and Sustainability Ville Salonen commented on the cooperation as follows: “Over the years, we have had the privilege of supporting Northgold AB in various matters and transactions. It has been a rewarding experience to witness the growth and development of their business as we have worked together.”

Magnusson’s team included Partners Ville Salonen and Lilli Parbo, as well as Associate Antti Muranen. 

Read Northgold AB’s press release here.

Photo: Northgold AB