ANNOUNCEMENT FROM EXTRAORDINARY SHAREHOLDERS’ MEETING ON 7 JUNE 2016 IN SOTKAMO SILVER AB (PUBL)

Sotkamo Silver AB (publ) held an Extraordinary Shareholders’ Meeting
(EGM) on Tuesday 7 June 2016 in Stockholm.


The following main decisions were made at the EGM:

The EGM resolved to adopt new articles of association in which the
minimum and the maximum amount allowed for the share capital has been
changed.

The EGM resolved to reduce the share capital with SEK 95,149,145.97 by
allocation to a non-restricted reserve to be used in accordance with the
shareholders’ decision. The reduction of the share capital will be made
without redemption of shares by changing the share quota value from
appr. SEK 6.86 to SEK 2.25 per share.

The EGM resolved to adopt two alternative new articles of association.
In the first articles of association, only the limits of the number of
shares in the articles of association were changed and in the second
articles of association both the the minimum and the maximum amount
allowed for the share capital and the limits of the number of shares
were changed. The EGM resolved to authorize the board of directors to
submit for registration the articles of association which is the most
appropriate with regard to the subscription level in the issue of units
that the EGM approved. 

The EGM resolved to approve the board of director’s resolution on 4 May
2016 to issue not more than 20,643,198 units. One unit consists of four
shares and one warrant. Each warrant entitles to subscription of one
share in the company. Shareholders in the Company registered in the
share register kept by Euroclear on the record date 9 June 2016 shall
have preferential right to subscribe for the units. The shareholders
will for every share they own in the company receive one unit right. One
unit right will entitle to subscribe for one unit. The units will be
issued at a subscription price of SEK 9 per unit, of which SEK 2.25
refers to the respective share. The warrants are issued without
consideration. Subscription for units shall be made during the period
from and including 15 June 2016 up to and including 29 June 2016. Each
warrant entitles to subscription of one new share in the company during
August 2017 for a subscription price of SEK 4 per share. If the issue is
fully subscribed, and all of the issued warrants are exercised, the
company’s share capital will increase with SEK 232,235,977.50, of which
SEK 185,788,782 for the shares in the issue and SEK 46,447,195.50 for
the warrants. If the issue is fully subscribed, and all of the warrants
are exercised, the number of shares in the company will increase by
103,215,990, of which 82,572,792 for the shares in the issue and
20,643,198 for the warrants. The prospectus that is expected to be
published around 14 June 2015 will contain further information regarding
the rights issue.

The EGM decided to carry out a bonus issue, thereby increasing the share
capital with SEK 95,149,145.97 by making use of the company’s
non-restricted equity, to be carried out without issue of new shares.

The EGM decided to reduce the share capital with a maximum of SEK
185,788,782. The reduction of the share capital shall correspond to an
amount in SEK that is equal to the increase in share capital through the
issue of shares in the unit issue and the bonus issue resolved by the
EGM minus the reduction amount resolved by the EGM, by allocation to a
non-restricted reserve to be used in accordance with the shareholders’
decision. The reduction of the share capital will be made without
redemption of shares by changing the share quota value.

Stockholm on 7 June 2016

SOTKAMO SILVER AB (publ)

Timo Lindborg, CEO

 

Sotkamo Silver AB (publ) discloses the information provided herein
pursuant to the Swedish Securities Markets Act and/or the Financial
Instruments Trading Act.

The offical Stock Exchange Releases are given in Swedish and there may
be slight differences in the translated versions.

 

About Sotkamo Silver AB (publ)

Sotkamo Silver AB´s business concept is to exploit mineral deposits in
the Nordic countries with regards to human society and environment.
Sotkamo Silver owns, through its subsidiary mineral deposits, which
contains silver and gold in Finland. The Company’s main development
project is the Silver Mine project in the municipality of Sotkamo.

Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of
reporting for public mining & exploration companies. Sotkamo Silver
has chosen to report mineral resources and ore reserves according to the
internationally accepted JORC or NI 43-101-code. The company applies
International Financial Reporting Standards (IFRS) as approved by the
European Union.

The ticker symbol is SOSI in NGM and SOSI1 in NASDAQ OMX Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507