Nordic Mines AB: First Quarter Report 2017
(Thomson Reuters ONE) -
First Quarter Report 2017
First quarter of 2017
· Revenues were SEK 0.3 million (SEK 0.0 million) as the Laiva Mine is on care
and maintenance and not in production.
· The Company reported an operating loss of SEK -11.3 million (SEK -13.3 million
Q1 2016).
· Loss after tax for the period amounted to SEK -11.8 million (SEK -13.4 million
Q1 2016), corresponding to SEK -0.02. (SEK -0.02) per share.
· Cash and cash equivalents were SEK 1.3 million (SEK 2.9 million 31 December
2016) at the end of the period. Thus, the Company currently does not have
sufficient funds to cover its needs for the next three months starting from the
date of this report.
· Equity was SEK 478.0 million (SEK 489.7 million 31 December 2016) at the end
of the period.
· On 9 January 2017, the Board of Directors of Nordic Mines cancelled the
extraordinary general meeting, as they decided to take the necessary steps to
carry out a rights issue of common shares to the Company's shareholders of
approximately USD 5.0 million, subject to shareholders' approval.
· On 18 January, Nordic Mines appointed the investment bank, Evli Bank plc to
lead a rights issue on behalf of the Company.
· On 18 January, the Company announced the resignation from the Board of
Directors of Mr Pranay Panda with immediate effect.
· During the period, the Company secured a further SEK 3.8 million (USD 0.45
million) in shareholder loans from Lau Su Holding AB.
· On 15 March, the Company announced that it had resolved to undertake a rights
issue for SEK 51 million at a subscription price of SEK 0.27 per share and to
issue shares to Lau Su Holdings AB and Lao Tzu Investments AB on the same terms
to offset their outstanding shareholder loans.
Significant events after March 31, 2017
· On 10 April, Nordic Mines announced that it had 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. Under the terms of the transaction FTR
will acquire 60% of NMM in two stages and fund the project back into production.
· The transaction with FTR is conditional on at least 40% of the Company's
shareholders agreeing to support the transaction. At present approximately 17%
of the Company's shareholders have expressed their support for the FTR
transaction
· On 2 May, FTR lent the Company EUR 200,000 as an advance against the EUR 1.0
million which would have been used to allow Firesteel to acquire 10% of Nordic
Mines Marknad AB
· On 8 May the shares of the Company were suspended from trading on the Nasdaq
Stockholm Stock Exchange after it came to light that certain price sensitive
information regarding the Company had appeared on the internet. Following
publication of a market update from Nordic Mines on 9 May the shares resumed
trading.
· On 11 May Nordic Mines received written confirmation from the authorities in
Finland that it will be allowed to treat ore and concentrates from third parties
for up to 18% of the feed capacity of the high grade leaching circuit in the
processing plant. This will allow up to 2% of total leaching capacity in
the processing plant to be used for third party ore and concentrates subject to
case by case approvals
· Also on 11 May, the Company received an offer from Lau Su Holding AB, the
Company's largest shareholder, to underwrite a SEK 69.1 million rights issue.
· After evaluating the Company's choices the board of Directors decided that a
rights issue underwritten by Lau Su was the most viable choice open to the
Company.
· The chairman, board of directors, CEO and the CFO have all decided to make
their positions available and will all step down at an Extraordinary General
Meeting which will be called shortly.
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 15:30 CET on 23 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.
2017 Q1 English:
http://hugin.info/138647/R/2107049/800115.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: 23.05.2017 - 15:30 Uhr
Sprache: Deutsch
News-ID 544212
Anzahl Zeichen: 5790
contact information:
Town:
Stockholm
Kategorie:
Business News
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