Nordic Mines AB: Nordic Mines Market Update
(Thomson Reuters ONE) -
Nordic Mines Market Update
On the weekend of Saturday 6 May and Sunday 7 May 2017 it came to the attention
of Nordic Mines AB (publ) ("Nordic Mines" or the "Company") that certain
confidential and price sensitive information had reached the public domain
without the knowledge of the Company and was circulating on the Internet. The
Company duly informed the Nasdaq Stockholm Stock Exchange ("Nasdaq") before
Nasdaq opened on 8 May 2017 and a trading halt was placed on the Company's
shares.
With respect to the confidential information circulating on the Internet, Nordic
Mines wishes to clarify the following:
* On 4 May 2017, the Company received an email purporting to make a "counter
offer" to the transaction with Firesteel Resources Inc. ("Firesteel") from
Nordic Mines' largest shareholder, Lau Su Holding AB. The offer was to
underwrite a percentage of a new rights issue. The Lau Su's "counter offer"
was not in a form which could be considered by the board of directors of the
Company, principally because it lacked the reasonable detail that would be
required by the Board to make a decision, in addition the Company asked Lau
Su to clarify its sources of funding in the "counter offer" and to provide
sufficient detail in the context of the Company and its future. The Company
suggested that Lau Su remake the offer through a bona fide market counter
part. The original "counter offer" which was made by email was then quickly
withdrawn by Lau Su Holding AB.
* Lau Su Holding AB has indicated that they intend to make a new, formal
proposal this week. Should such an offer be received and be in a form which
can be considered by the directors of Nordic Mines, it will be communicated
to the market.
* In late April 2017, Nordic Mines had a meeting with the environmental
authorities in Finland about an application for permitting relating to toll
treating third party material. This was an informal meeting without a formal
outcome. The non-binding indication provided at the meeting was that the
authorities may permit that 18% of the material fed into the process plant
at Laiva could be supplied from third party sources.
* Handling of all external materials would need to be applied with sufficient
data, assays, leach tests, etc and would constitute a significant reporting
burden for the Company. The environmental authorities may set new monitoring
parameters depending on the quality of the external material. In addition, a
new water cleaning system will be required to process external material.
* Further, the Company would note that
i. There are few potential sources of material within a short enough
distance from Laiva which would mean that third party material could
be economically toll treated at the plant at Laiva;
ii. Nordic Mines currently has no offers of a supply of material to the
plant; and,
iii. The plant cannot be operated economically with only a supply of third
party material equating to 18% of the plant's capacity so would remain
reliant on ore from the Laiva mine.
* Ore sorting: the Company believes that the use of laser ore sorting could
make a material difference to the economics of the Laiva operation. The
Company has disclosed all of the results received from the tests to-date.
More work is needed to determine whether to incorporate ore sorting into the
Laiva flow sheet. Until such time as this work is done the Company can not
conclusively state that ore sorting works.
* The disclosed transaction with Firesteel has been approved by the directors
of the Company, pending certain conditions precedent, as announced on 10
April 2017. The initial part of the transaction with Firesteel (where
Firesteel will buy 10% of Nordic Mines Marknad for the sum of ?1 million) is
conditional upon the following "conditions precedent" :-
* That the shareholders comprising the Lau Su group of shareholders
support the FTR transaction by signing a voting support agreement. That
Lau Su group sign a Standstill agreement in the context of its loans to
the Company and agree to have its loans are repaid by Firesteel either
in shares or cash at Firesteel's option.
* That the Company allows the Firesteel Management, management control of
the management of the Laiva mine pursuant to the terms of a management
agreement the continuation of which is conditional upon the next C$20
million being invested into Nordic Mines Marknad.
* That the Company would grant Firesteel and option in order to buy an
additional 50% of Nordic Mines Marknad, subject to Firesteel investing a
further C$20 million and pursuant to the terms of a shareholders
agreement to be signed by the Company and an EGM, where the shareholders
will be given the opportunity to vote on the Firesteel proposal.
* The Company can confirm that pursuant to the announcement on the 10(th) of
April 2017, that it is making good progress on the documentation and that
the initial transaction is now pending the signature of the Lau Su group of
shareholders all of whom have indicated with the exception of Lau Su itself
that they will support the Firesteel Transaction, however and whilst
Firesteel is yet to receive the signed voting support agreements as set out
herein. Firesteel, as agreed with the Company, on 2 May 2017 sent the first
installment of EUR 200,000 which is part of the EUR 1.0 million which will
allow Firesteel to acquire 10% of Nordic Mines Marknad AB. Firesteel
published a press release on May 3, 2017 stating that it has completed the
first installment of EUR 200,000.
* The Company has received many questions from shareholders seeking to clarify
the Firesteel Transaction and it has posted a detailed Q&A on its website
which further elaborates on the transaction with Firesteel.
* The Company will give shareholders on record the opportunity to meet with
Board members and the Management, in addition to the CEO of Firesteel on
Tuesday 16 May 2017 at a venue which it will confirm in the next 24 hours.
The purpose of the meeting is to discuss the prospects for the Company and
the Laiva Mine. If by then the Company has received Lau Su's "counter offer"
then the Company will be happy to discuss the merits of each proposal with
shareholders at the same forum.
The Company's cash position is constrained and the Company is in need of
funding, to keep afloat. The Company has looked at numerous different options,
but currently the only proposal it has is that of Firesteel. If other offers are
made, the Board of the Company will off course evaluate them and propose the
best solution for all shareholders.
For additional information, please contact:
D. Saradhi Rajan, CEO: +44 743 271 1564
Ole Eikeland: +47 900 60 666
For more information about Nordic Mines, please visit; www.nordicmines.com.
This information is Nordic Mines AB (publ) obliged to make 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 15:00 CET on 9 May
2017.
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.
20170509 NOMI - Press Release Market Update :
http://hugin.info/138647/R/2103008/797602.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: 09.05.2017 - 15:00 Uhr
Sprache: Deutsch
News-ID 541252
Anzahl Zeichen: 9292
contact information:
Town:
Stockholm
Kategorie:
Business News
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