Finnish metals group Outokumpu has announced it is selling its stake in the Arctic Platinum Partnership (APP) to Canadian firm South Atlantic Ventures.

The deal is worth $31 million, comprising a $23 million cash lump sum and a further $8 million in South Atlantic shares.

Outokumpu currently owns a 49 per cent share in APP with the majority holding belonging to Gold Fields of South Africa.

Jyrki Juusela, chief executive of Outokumpu, said he believed the deal would prove a success.

'This transaction is a continuation in Outokumpu's strategy to move further down stream in the metals business,' he explained.

'We have found a good home in South Atlantic Ventures for our share in APP. I have all the confidence on the success of this project, and the fact that we will take South Atlantic shares as part of the payment gives us the possibility to benefit from the potential up-side of the project,' he added.

The agreement remains subject to a number of standard terms and conditions, such as obtaining requisite regulatory and third party approvals and consents, but appears set to go ahead.

Taylor Companies acted as financial advisors to Outokumpu in connection with the transaction.

The Arctic Platinum Partnership (APP) was set up by Outokumpu and Gold Fields in March 2000 to explore platinum group metals in south-western Lapland in Finland.