Endomines Finland Oyj - Press Release - 7.7.2025, at 12:00 EEST
Endomines invests in domestic gold production by acquiring Power Mining Oy's Pampalo mining operations
Endomines Oy, a wholly owned subsidiary of Endomines Finland Oyj ("Endomines" or the "Company"), signed an agreement to acquire the Pampalo operations of Power Mining Oy, an underground mining service provider. The transaction is valued at approximately EUR 2.55 million and will be financed with Endomines Oy's cash reserves.
With the transfer of operations, the majority of the employees of Power Mining Oy working at the Pampalo mine will transition to Endomines' employment on the transaction's completion date, September 1, 2025 (the "Completion Date"). The transaction includes the machinery and equipment necessary for underground mining, valued at EUR 1.95 million, as well as an inventory valued at approximately EUR 0.60 million. The final value of the inventory will be determined on the Completion Date, and any change in the inventory will directly affect the purchase price. The purchase price will be paid in three approximately equal instalments: the first on the Completion Date, the second by March 31, 2026, and the third by September 30, 2026. The Company estimates that the acquisition will reduce gold production costs by approximately EUR 90-120 per ounce from 2026 onwards without additional investments.
Power Mining Oy provides rock construction services for mining and infrastructure projects in Finland and Sweden, employing around 50 mining professionals. The company has been a mining construction partner at Endomines' Pampalo underground mine since 2021. The acquired operations employ about 30 people, all of whom work at the Pampalo mine.
Kari Vyhtinen, CEO of Endomines Finland Oyj: The business acquisition supports our strategy, brings cost savings, and enables growth
"This business acquisition supports our strategy, where Pampalo's production is an essential part of our operations and growth. By integrating Power Mining's Pampalo operations into Endomines, we can develop the mine's operations, safety, and sustainability in a new way, while achieving significant cost savings. Additionally, a broader production chain creates a strong foundation for our growth.
"The solid expertise, professionalism, and experience of Power Mining's personnel are valuable resources that support Endomines' development during the growth phase. In addition to the transitioning personnel, we will immediately initiate new recruitments to support growth."
Juha-Matti Mantere, CEO of Power Mining Oy: Grateful for the long-term cooperation
"This business acquisition completes the long-term cooperation between Power Mining and Endomines, which has been a key part of both companies' success. I want to thank Endomines for the cooperation and wish continued success in the future."
Guidance remains unchanged
The transaction does not affect the guidance provided by Endomines Finland Oyj. In its financial statements release on February 13, 2025, the Company estimated gold production to be between 16,000-22,000 ounces (497.7 kg - 684.3 kg) in 2025. The Company expects production growth to be higher in H2-2025.
Further Information
Kari Vyhtinen
CEO
Endomines Finland Oyj
kari.vyhtinen@endomines.com
+358 40 585 0050
Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our operations are focused on gold production and exploration in the Karelian Gold Line in Eastern Finland. We also own the rights to seven gold deposits in the United States. We produce gold for the jewellery and electronics industries and create value by turning natural resources into wealth; an investment that can withstand global political instability. Our vision is to develop the Karelian gold line into one of the most important and sustainable gold producing regions in the world. Endomines is listed on the main list of OMX Helsinki (PAMPALO). www.endomines.com.
