Finnish gold mine faces closure as investor activity grows with questionable claims

A troubled gold mine in Raahe, Finland, remains in legal limbo after its environmental permits were revoked, yet its operator continues to raise tens of millions in funding while downplaying the regulatory risks, reports Yle.

The Laiva Gold mine has not produced gold in over four years, and its future hangs on an upcoming ruling by the Vaasa Administrative Court, expected in April. Despite this, the Canadian-owned company is marketing the project to investors as fully permitted, omitting mention of the revoked permits on its investor materials.

Legal experts and financial regulators warn that the company’s selective disclosure may mislead investors. While Laiva Gold’s disclaimers acknowledge that regulatory decisions could impact operations, Finnish financial authorities stress that such clauses do not absolve firms from providing complete and material information.

Kai Kokko, a professor of environmental law at the University of Helsinki, told Yle that while the company’s statements may not be outright false, they omit critical details about the permit situation—a key factor for any mining investment.

The mine’s projected gold reserves, valued at over €8 billion at current prices, far exceed its historical output. Since operations began 15 years ago, the site has yielded just 2,500 kg of gold, worth under €400 million today. Critics question whether such optimistic estimates align with reality, particularly as the facility lacks even basic infrastructure like electricity.

In a November presentation at a German gold conference, Laiva Gold’s business development director, Jeremy Yaseniuk, claimed the company could easily secure $500 million from large investors but preferred raising $30 million from smaller backers instead. He did not specify whether the figure referred to US or Canadian dollars, but the sum would exceed €300 million in either case.

Industry observers find the strategy puzzling. Karri Salmi, CEO of the Finnish Shareholders’ Association, noted that operational transparency should not depend on investor size. “Whether dealing with one large owner or many small ones, the approach to governance should be consistent,” he said.

The mine’s permits were revoked last year due to serious environmental concerns—a rare move in Finland, where permit modifications are typically prioritised over outright cancellations. The administrative court’s pending decision will determine whether the revocation stands.

Laiva Gold did not respond to Yle’s requests for comment on its disclosure practices.