Nordic Mines holds start of production at Laiva mine and withdraws proposed share issue
(Thomson Reuters ONE) -
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 25 June 2015
As previously communicated, Nordic Mines AB (publ) (Nordic Mines or the Company)
has been working to secure an optimal financing solution to restart operations
at the Laiva mine at a point in time when external factors in particular, such
as the price of gold and the exchange rate, create conditions for profitable
mining.
SRK Consulting UK Ltd (SRK), as communicated previously, collaborated with
Nordic Mines during the winter of 2014 and 2015 to develop a business plan for
the restart of the operations at the Laiva mine. The business plan is based on
the mineral reserve as of 1 January 2015, as calculated by SRK, totalling 9.4
million tonnes with a head grade of 1.2 g/t. In conjunction with preparations to
restart its mining operations, Nordic Mines prepared a detailed mining plan for
the first 18 weeks on the basis of additional drill hole data. Negative
deviations in the detailed mining plan resulted in further review of the mineral
reserve in its entirety. The determination has now been made that a higher gold
price than what was used in previous assumptions is required to ensure
sufficient profitability for the restart of the Laiva mine. The review of the
mineral reserve also indicates that a small drilling programme is recommended to
optimise the planning for the mining. The Board of Directors has therefore
decided to hold off on the start of production at the Laiva mine.
The Company is also continuing to work on the preparation of a financing
solution which given the right conditions would make it possible to restart
operations at the Laiva mine with sufficient profitability. Such a solution
could consist of, individually or in combination, the pre-sale of gold
production and gold deliveries, the renegotiation of supplier terms, other types
of bridge financing for working capital, share issues or collaborations with
strategic or financial partners. The Company is therefore holding discussions
with its lenders. If Nordic Mines is in significant breach of its project
financing agreement, the bank consortium is entitled to apply for a default of
the Finnish composition plan.
In the notice to attend the Company's AGM in Uppsala on 30 June 2015, which has
already been published, the Board attempted to create some room for negotiation
in its continued work to secure an optimal financing solution for the Company.
The notice therefore included a proposal for a resolution on a rights issue and
a directed share issue (and related actions, such as changes to the Articles of
Association and a decrease in the share capital). Since the Board has now
decided to hold off on the start of production at the Laiva mine, the Company
currently will not seek additional capital from its shareholders or external
investors via the share issues proposed in the notice to attend the AGM. The
Board has therefore decided to withdraw the matter under point 15 of the
proposed agenda (i.e. the share issue proposals and related actions).
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 25 June 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. Also
refer to www.nordicmines.se.
Nordic Mines holds start of production at Laiva mine:
http://hugin.info/138647/R/1931303/694446.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nordic Mines AB via GlobeNewswire
[HUG#1931303]
Unternehmensinformation / Kurzprofil:
Datum: 25.06.2015 - 08:00 Uhr
Sprache: Deutsch
News-ID 402904
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Kategorie:
Business News
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