S2 Resources Raises A$3M, Reports 17m @ 601ppm Copper at Warraweena

Corporate Strengthening and Strategic Partnership

S2 Resources Ltd has fortified its financial position following the sale of its Fosterville exploration licence (EL007795) to Agnico Eagle for A$17 million in cash. This transaction, completed during the December 2025 quarter, not only injected significant liquidity but also paved the way for a strategic partnership, with Agnico Eagle acquiring a 5.6% shareholding in S2 through a A$3 million private placement. This positions Agnico as the company’s fourth largest shareholder, underscoring growing institutional confidence in S2’s portfolio.

Exploration Advances in New South Wales

Exploration efforts at the Warraweena project in northern New South Wales have yielded encouraging early results. A reconnaissance drilling program targeting six geophysical anomalies intersected anomalous copper mineralisation and hydrothermal alteration in half of the holes drilled. Notably, one hole returned 17 metres at 601 ppm copper, highlighting the prospectivity of the concealed volcanic arc rocks beneath younger cover. Complementary geophysical surveys, including an expanded gravity survey and planned induced polarisation and magnetotelluric studies, aim to refine targets for follow-up drilling.

Expanding Footprint and Project Pipeline

S2 continues to advance its earn-in agreements across several projects. In Western Australia, the Jillewarra project remains a key focus, with S2 working towards earning up to a 70% interest by meeting expenditure and feasibility milestones. Meanwhile, the newly acquired Loch Lilly project in New South Wales offers a multi-commodity greenfields opportunity, with S2 earning up to 75% through staged investment. The company has also streamlined its portfolio by withdrawing from less prospective projects such as Ballarat West and Glenlogan, concentrating resources on higher-potential assets.

Investment and Financial Position

At quarter end, S2 reported a robust cash balance of A$22.79 million, supported by the Fosterville sale and capital raising activities. The company also holds a significant 29.55% stake in TSXV-listed Valkea Resources, valued at approximately A$5.95 million, though this will dilute to around 24.53% following Valkea’s subsequent private placement. Operating cash outflows were approximately A$1.3 million for the quarter, with planned expenditure of A$1.6 million for the coming quarter, reflecting a disciplined approach to exploration investment.

Outlook and Market Positioning

S2 Resources is positioning itself as a nimble explorer with a diversified portfolio spanning gold, copper, nickel, and base metals across Australia and Finland. The strategic sale of Fosterville to a major player like Agnico Eagle not only strengthens the balance sheet but also validates the quality of S2’s assets. Early-stage exploration successes at Warraweena and the acquisition of promising ground at Loch Lilly suggest potential for further value creation. Investors will be watching closely as S2 progresses its exploration programs and capitalises on its strengthened financial footing.