Business plan for the Laiva mine and continued efforts to secure funding
May 29 2015 - 2:00AM
The English text
is an unofficial translation of the Swedish original, and in the
event of any discrepancies between the Swedish text and the English
translation the Swedish text shall take precedence. This is not a
legal document.
PRESS RELEASE 29 May 2015
As previously communicated, Nordic
Mines finalised a business plan during the beginning of the year
for the restart of operations at the Laiva mine. As part of this
business plan, a five-year mining plan was prepared in
collaboration with SRK Consulting UK Ltd (SRK) that was based on
the Company's mineral reserve as of 1 January 2015 of 9.4 million
tonnes with a head grade of 1.2 grams per tonne.
It is the goal of Nordic Mines to
restart operations at the Laiva mine at a point in time when
external factors, for example the price of gold and foreign
exchange rates, present conditions for profitable mining.
In order to restart operations at
the Laiva mine today, an additional EUR 12 million would be
required, of which EUR 7 million is working capital, EUR 3 million
seasonal investments and SEK 2 million liquidity reserve.
The Company is now working to find
a funding solution that consists of either a single measure or a
combination of measures, for example the pre-sale of gold
production and gold deliveries, renegotiation of supplier terms,
other types of bridge financing for working capital, share issues
or strategic or financial partnerships.
In today's Notice of Annual
General Meeting (only available in Swedish), Nordic Mines is
seeking to achieve a certain degree of flexibility in order to find
an optimal funding solution. The Notice therefore includes a
proposal for conditional decisions regarding share issues, rights
issues and/or directed share issues (for more information please
refer to point 15 in the Notice of Annual General Meeting). In the
event Nordic Mines proceeds with the above-mentioned share issue
proposals, the Company intends to provide information regarding
conditions, volume and a more detailed transaction structure before
the Nordic Mines Annual General Meeting on 30 June 2015.
The Company's business plan is
still conditional on approval from the Company's current lenders. A
potential funding solution will also be conditional on the current
lenders' approval of the business plan.
Nordic Mines has engaged Evli Bank
and PWC Corporate Finance Debt & Capital Advisory as financial
advisors.
For further
information, please contact:
Eva Kaijser, CEO,+46 (0)70 932 09 01
Jonatan Forsberg, CFO, +46 (0)76 105 13 10
For more information about Nordic
Mines, please visit www.nordicmines.se.
The information presented above
has been disclosed pursuant to the Securities Markets Act and/or
the Financial Instruments Trading Act. The information was
published on 29 May 2015 at 8:00 a.m.
Nordic Mines is a
Nordic mining and exploration company. The Laiva mine in Finland
produced gold between 2011 and 2014. The deposit is among the
largest in the Nordic region. Nordic Mines is a member of Svemin
and applies its reporting regulations for public mining and
exploration companies. The Nordic Mines share has been admitted for
trading on the Nasdaq Stockholm's Small Cap list. For more
information, please visit www.nordicmines.se.
Business plan and secure funding
Nordic Mines
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic Mines AB via Globenewswire
HUG#1924804