Nordic Mines AB: Nordic Mines Announces Transformational Transaction to Bring Laiva Back into Production
(Thomson Reuters ONE) -
Nordic Mines Announces Transformational Transaction to Bring Laiva Back into
Production
Nordic Mines AB (publ) ("Nordic Mines" or the "Company") has signed a heads of
agreement with the Canadian company Firesteel Resources Inc (TSXV: "FTR")
whereby FTR will acquire a majority stake in the Laiva project by a combination
of newly issued shares in Nordic Marknad AB ("NMM"), a wholly owned subsidiary
of the Company, or buying shares in NMM from the Company. FTR intends to make
the investment necessary to take the Laiva project back into profitable
production. The highlights of the transaction are:
* The Company will grant an option to FTR to acquire up to 60% of NMM, a
wholly-owned subsidiary of the Company, subject to certain conditions
precedent.
* Under the terms of the transaction, FTR will acquire 10% of NMM within 30
business days, subject to certain conditons precedent, for an aggregate sum
of ?1million, ?200,000 of which will be paid to the Company within 7
business days.
* FTR will then have the option to invest a further cash amount of Cdn $20
million by a combination of newly issued shares in NMM or buying shares in
NMM from the Company in order to acquire a further 50% of equity in NMM.
This option will be valid for 90 business days from the date that FTR
acquire the initial 10% of NMM, and is subject to shareholder and regulatory
approval and is further subject to the rules of the TSX Venture Exchange
("TSXV").
* Upon completion by FTR of its option to acquire a further 50% of NMM: FTR
will own 60% of NMM and Nordic Mines will hold 40% of NMM on a fully funded
basis without further dilution at the Company level. FTR will then have the
option for a further 12 months to acquire the final 40% of NMM at fair
market value, which will be settled either by the issuance of new shares in
FTR or in cash.
* FTR is listed on the TSX Venture exchange in Canada. It is the Company's
intention to engage with the team at FTR and bring them alongside Legacy
Hill Resources in bringing the Laiva mine back into production as soon as
possible.
* The Board of Directors of Nordic Mines has resolved to cancel the EGM of 18
April 2017, to which the shareholders have been summoned to decide on a
proposed rights issue. The decision to cancel the EGM has been taken because
the Board of Directors of Nordic Mines has decided to pursue the transaction
with FTR.
* Nordic Mines therfore gives notice that it has cancelled the rights issue
and EGM previously announced on 15 March 2017 and scheduled for 18 April
2017.
The transaction with FTR is further subject to the parties entering into
definitive agreements. Details of an EGM in Nordic Mines will be published when
certain conditions precedent to the transaction have been fulfilled.
-The FTR team have many years of successful experience in rehabilitating gold
mines. This transaction ensures that the Laiva project has access to the
required funding and people necessary for a successful restart, says Saradhi
Rajan CEO of Nordic Mines.
For additional information, please contact:
Rune Nordström, Head of Corporate Communications and Investor Relations:
rune.nordstrom(at)nordicmines.com, +46 70 602 65 20
For more information about Nordic Mines, please visit www.nordicmines.com/.
Nordic Mines AB (publ) is obliged to make this information public pursuant to
the EU Market Abuse Regulation. The information was submitted for publication,
through the agency of the contact person set out above, at 10 April 2017 08.30
CEST.
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 Nasdaq Stockholm's Small Cap list. For further
information, see www.nordicmines.com.
20170410 NOMI Press Release:
http://hugin.info/138647/R/2095050/792304.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq 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
Unternehmensinformation / Kurzprofil:
Datum: 10.04.2017 - 08:30 Uhr
Sprache: Deutsch
News-ID 535381
Anzahl Zeichen: 5013
contact information:
Town:
Stockholm
Kategorie:
Business News
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