Nordic Mines signs Joint Venture Memorandum of Understanding with Firesteel
(Thomson Reuters ONE) -
Nordic Mines signs Joint Venture Memorandum of Understanding with Firesteel
Nordic Mines AB (Publ) ("Nordic Mines" or the "Company") has signed a Memorandum
of Understanding (MOU) with Firesteel Resources Inc ("FTR") in order to
establish a Joint Venture in favour of FTR. The salient features of the MOU are
set out below.
* The Joint Venture Vehicle will be Nordic Mines Marknad AB ("NMM") which at
present is a wholly owned subsidiary of the Company. NMM will hold all of
the Company's prospecting licenses as well as all of the exploitation
properties. Nordic Mines will contribute the properties, the mill and the
licenses for 49% of the Joint Venture and FTR will contribute CAD
18,000,000, the operating team, the operating plan and know-how for 51% of
the Joint Venture. NMM contains all the operative business of the Nordic
Mines group.
* The Joint Venture will be run by an operating committee comprised of five
directors. Three of whom will be appointed by FTR and two of whom will be
appointed by Nordic Mines. It is the parties intention that any profits from
NMM pursuant to the production of gold will be distributed to the respective
parties in the form of dividends.
* The parties intend to sign legally binding documentation by June 25, 2017
which will include FTR committing the sum of CAD 18,000,000 (approximately
116 MSEK) by August 25, 2017. To initiate the legally binding documentation,
the Joint Venture has secured approval from shareholders representing close
to 40 % of the shares and votes in Nordic Mines, supporting the necessary
agreements and a Standstill and Exclusivity arrangement to FTR for a period
up-until August 25, 2017 in which to complete the transaction. Standstill
meaning that loans in NMM will not be collected although the expiration date
has passed. In exchange for this option FTR will pay the sum of EUR 887,100
(approximately 8,7 MSEK) to the Company with immediate effect no later than
during the week commencing Monday 12(th) June 2017 via confirmed Bank
Transmittance copy to the Company. The agreement will be subject to
shareholders approval at an upcoming Extra General Meeting to be summoned.
* As a result of the Joint Venture the resolution by the board of directors on
Rights Issue on the condition of the subsequent approval from the AGM, as
communicated on 1 June 2017 in the notice to the upcoming AGM, will no
longer be supported by Lau Su Holding AB ("Lau Su").
* Lau Su has signed the MOU and has agreed to support a 51:49 Joint Venture
model involving a binding commitment to investment of CAD 18,000,000.
For additional information, please contact:
Torbjorn Bygden
Company Secretary & Investor Relations
Torbjorn.Bygden(at)azets.net
00 46 (0) 70 301 45 46
Lindhagensgatan 94, Box 34212
10026 Stockholm
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 8 June 2017 10:30
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.
Press release June 7 ENG:
http://hugin.info/138647/R/2111138/803048.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: 08.06.2017 - 10:30 Uhr
Sprache: Deutsch
News-ID 546918
Anzahl Zeichen: 4501
contact information:
Town:
Stockholm
Kategorie:
Business News
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"Nordic Mines signs Joint Venture Memorandum of Understanding with Firesteel"
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