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.
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