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.