Talvivaara Mining Company Plc: No solution reached in short term financing negotiations
(Thomson Reuters ONE) -
Stock Exchange Release
Talvivaara Mining Company Plc
6 November 2014
No solution reached in short term financing negotiations
Talvivaara Sotkamo Ltd to apply for bankruptcy
As previously announced, Talvivaara Mining Company Plc ("Talvivaara" or the
"Company") has been seeking a solution to its short and long term financing
requirements. In its H1 2014 interim report, the Company stated that
implementation of the proposed restructuring programmes for Talvivaara and its
operating subsidiary Talvivaara Sotkamo Ltd ("Talvivaara Sotkamo") remains
subject to sufficient creditor support and an adequate financing solution, and
that the Company continues to explore all possible sources of finance. Further,
the Company stated that whilst it considered an adequate financing solution to
be achievable, it acknowledged that reaching a positive outcome is not certain
and that the Company can give no assurance that the submitted restructuring
programmes are approved or that the reorganisation process will ultimately be
successful.
The financing discussions with the key stakeholders, potential new investors and
the Republic of Finland have continued intensely throughout the past months, and
as of the date of this announcement, negotiations for a long term solution are
already far advanced. However, Talvivaara has today been informed that short
term financing to meet the Company's immediate working capital needs will not be
available in the required timeframe, which makes concluding the long term
solution unachievable.
The management of Talvivaara believes that, with appropriate additional
financing, the recent operational progress and improvements in environmental
risk management would have provided a good basis for future success of
Talvivaara following implementation of the proposed corporate restructuring
programme and the new corporate structure. However, in the absence of any
additional financing, Talvivaara has been informed that the Board of Directors
of Talvivaara Sotkamo have decided to apply Talvivaara Sotkamo into a
bankruptcy, and that the Administrator of the corporate reorganisation
proceedings has given his consent to this decision.
The listed parent company Talvivaara Mining Company Plc. will provide services
for the bankruptcy estate of Talvivaara Sotkamo and continue its operations for
the time being with the target of securing sufficient financing to acquire the
mining operations and associated assets and rights from the bankruptcy estate of
Talvivaara Sotkamo.
Talvivaara expects that the application for bankruptcy by Talvivaara Sotkamo
will be filed with the district court of Espoo, Finland, during today.
Enquiries
Talvivaara Mining Company Plc Tel +358 20 7129 800
Pekka Perä, CEO
Pekka Erkinheimo, Deputy CEO and Chief Commercial Officer
Pekka Jaatinen, Administrator,
Attorney-at-Law, Castrén & Snellman Attorneys Ltd Tel +358 20 7765 765
Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with its primary focus on nickel and zinc using a technology known as
bioheapleaching to extract metals out of ore. Bioheapleaching makes extraction
of metals from low grade ore economically viable. The Talvivaara deposits
comprise one of the largest known sulphide nickel resources in Europe. The ore
body is estimated to support anticipated production for several decades.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming agreement with Nyrstar NV. Talvivaara is listed on NASDAQ Helsinki.
Further information can be found at www.talvivaara.com.
No solution reached in short term financing negotiations:
http://hugin.info/136227/R/1869205/657165.pdf
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originality of the information contained therein.
Source: Talvivaaran Kaivososakeyhtiö Oyj via GlobeNewswire
[HUG#1869205]
Unternehmensinformation / Kurzprofil:
Datum: 06.11.2014 - 08:46 Uhr
Sprache: Deutsch
News-ID 350225
Anzahl Zeichen: 5073
contact information:
Town:
Espoo
Kategorie:
Business News
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"Talvivaara Mining Company Plc: No solution reached in short term financing negotiations"
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