Nordic Mines receives an offer to underwrite a rights issue

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multilang-release

20170515 NOMI Press Release.pdf

Nordic Mines receives an offer to underwrite a rights issue

On 11 May 2017, Nordic Mines AB (publ) ("Nordic Mines" or the "Company") received an offer from Lau Su Holding AB ("Lau Su"), the Company's largest shareholder, which holds 21.7% of the ordinary shares of Nordic Mines, to underwrite a rights issue to support the Company. The proposal is intended to replace the transaction with Firesteel Resources Inc ("Firesteel").

The key terms of Lau Su's proposal are:

  • SEK 69.1 million rights issue
  • Price set at 0.285SEK per share
  • USD 3.0 million of new investment by Lau Su
  • Conversion of USD 1.2 million of loans previously provided by Lau Su, plus interest at the rights issue price
  • USD1.0 million to be made available immediately by way of a short term loan to bridge the funding requirements of Nordic Mines
  • Lau Su to lead a debt consortium to provide a minimum of US$6m of debt financing secured against the Company's assets and the exclusive rights to the Company's gold production for 5 years
  • Lau Su to take control of the Company by way of having three out of four of the directors of the Company following the rights issue

The board of directors of Nordic Mines has responded to Lau Su regarding some of the terms of its proposal and will evaluate the proposal and any adjustments thereto on its merits. 

Nordic Mines has appointed financial advisers to assist the directors to evaluate the proposal and compare it to the proposed transaction with Firesteel, as announced on 10 April 2017 and updated on 9 May 2017.  The board of directors will make a recommendation to shareholders in due course.  In the meantime the Company continues to work to advance the transaction with Firesteel

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 12:00 CET on 15 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.

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http://www.globenewswire.com/NewsRoom/AttachmentNg/6e476308-e526-4558-9962-62999f6d3490