Latitude 66 Faces Regulatory Hurdles as Finnish Mining Rights Expire

Strategic JV Sale Unlocks Immediate Capital

Latitude 66 Limited (ASX – LAT) has taken a significant step to bolster its financial position by entering into a non-binding term sheet to sell its 17.5% interest in the Greater Duchess Joint Venture in Queensland. The upfront cash consideration of A$2 million, payable upon completion, offers immediate non-dilutive funding. Moreover, the deal includes a contingent consideration structure that could deliver up to an additional A$4 million, depending on future ownership changes within 90 days of the agreement.

This transaction is subject to the right of first refusal held by joint venture partner Carnaby Resources Limited, which has 30 days to decide whether to match the offer. Latitude 66 has also secured a $750,000 unsecured loan from Argonaut Partners as part of the arrangement, providing further near-term liquidity.

Exploration Progress in Australia and Finland

On the exploration front, Latitude 66 completed a 5,093-metre Aircore drilling program at its Edjudina Project in Western Australia, targeting multiple gold anomalies. Initial results released post-quarter suggest encouraging mineralisation, with follow-up drilling planned to extend promising zones near the Great Victoria Granite contact.

Meanwhile, in Finland, the company’s KSB Project saw successful reverse circulation drilling at the K6 prospect, intersecting anomalous gold, cobalt, and copper mineralisation. This program also validated RC drilling as a cost-effective exploration method in the region, a notable development given the typically higher costs of diamond core drilling in European terrains.

Navigating Regulatory Challenges in Finland

Latitude 66 faced a setback with the expiration of mining rights over the Juomasuo and Pohjasvaara mining zones, part of the KSB Project, following a Supreme Administrative Court decision. Despite this, the company retains freehold ownership of most land in these zones and has secured consent from minority landowners, positioning it well to apply for new exploration or mining permits once the current mining zones cease.

The company is actively engaging with Finland’s Mines Department (Tukes) and monitoring legislative amendments to the Finnish Mining Act aimed at streamlining permit transitions. This ongoing dialogue underscores Latitude 66’s commitment to advancing its projects responsibly within evolving regulatory frameworks.

EU-Funded Research Collaboration Enhances Exploration

Latitude 66 is also participating in the European Union’s UNDERCOVER project, a €5 million research initiative focused on deep exploration technologies for critical raw materials. This collaboration involves advanced geophysical surveys across the Kuusamo Schist Belt, where the KSB Project is located, potentially enhancing the company’s ability to identify high-potential mineralisation zones down to depths of approximately 1 kilometre.

Financial Position and Outlook

As of 30 June 2025, Latitude 66 held cash reserves of $436,000 with no corporate debt. Exploration expenditures for the quarter were $1.34 million, in line with the company’s active exploration agenda despite some overspend related to legal and accounting complexities during re-compliance. The company continues to manage costs prudently, aiming to prioritise funding towards exploration activities.

Latitude 66’s Managing Director, Grant Coyle, emphasised the company’s disciplined capital management and strategic focus on unlocking value across its portfolio, balancing near-term funding needs with exposure to future upside through contingent payments and ongoing exploration success.