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@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.
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