GOTHENBURG, Sweden, August 22, 2003 (PRIMEZONE) -- Riddarhyttan Resources AB (Other OTC:RRHYF):
Increased institutional ownership
Riddarhyttan's Board of Directors has decided to partly use the authorization voted upon and granted at Riddarhyttan's ordinary shareholders meeting in April 2003. The treasury issue will raise approximately 22 MSEK net and the proportion of foreign owned shares will increase to just over 31%.
The addition of international institutional shareholders will provide further financial strength and enhance flexibility.
The proceeds of 22 MSEK will mainly be used to concentrate the drilling to transfer "inferred resources" in open pit positions to "indicated resources" and to further develop a geological model with the aim of creating a better basis for continued exploration and future mining activities.
Share lending
In order to facilitate the aforementioned private placement transaction, Dunross & Co AB, the company's major shareholder, has temporarily put on loan a total of 6 million shares to Ohman Fondkommission. The lent shares will be returned to Dunross as soon as the new share issue has been registered at the Swedish Registration office (PRV), with the new shares having been distributed accordingly.
For more information, please contact: Lars-Goran Ohlsson, President Phone: +46 (920) 758 99 Mob: +46 (705) 50 19 48 Email: lars-goran.ohlsson@riddarhyttan.se or George Salamis, Vice President Telephone: +1-519-856-0888 Email: gsalamis@attcanada.ca or Johan Rehnstrom, Financial manager Phone: +46 (920) 758 97 Mob: +46 (705) 27 51 07 Email: info@riddarhyttan.se
Riddarhyttan Resources AB is an exploration company owning titles on precious metal assets situated in the Nordic region of Europe. The primary business idea is, by means of exploration and acquisition, to acquire new zone of mineralization, which through detailed exploration can be advanced to economic resources. At the Suurikuusikko occurrence (Finland), which is Riddarhyttan's most advanced project, gold resources (57% indicated and 43% inferred resources, cut-off 2g/t Au) amount to 11.5 million tons grading 5.4 grams gold per tonne (approximately 2 million ounces of gold).