Terrafame Group and its partners secured a EUR 250 million funding arrangement to enhance mining operations and achieve sustainable production goals.

Information on the Target

Terrafame Group Ltd. and Terrafame Ltd. are Finnish entities that operate in the multi-metal mining sector, primarily producing nickel, zinc, and cobalt from their facility located in Sotkamo, Finland. The company is committed to conducting its operations in an environmentally sustainable, safe, and profitable manner. Terrafame Ltd. is owned by Terrafame Group Ltd., which is wholly owned by the State of Finland, thus emphasizing the national interest and strategic importance of the mining operations.

The recent funding arrangement has secured a total of EUR 250 million, aimed at reinforcing and completing the ramp-up of Terrafame’s operations. A pre-transaction valuation of Terrafame has been established at EUR 381.8 million, matching the total capital invested by the Terrafame Group to date. Through this financing arrangement, Galena Asset Management has acquired a 15.5% equity stake with a EUR 75 million investment, while Terrafame Group retains an 84.2% stake after contributing an additional EUR 25 million.

Industry Overview in Finland

Finland's mining industry has gained prominence due to its rich natural resources and sustainable mining practices. As a member of the European Union, Finland benefits from a stable investment climate, robust environmental regulations, and a strong commitment to su