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2014-04-28

Nordic Mines AB: Nordic Mines AB presents a preliminary financing solution and resolves on terms for share issues

PRESS RELEASE, April 28, 2014

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO USA, AUSTRALIA,
CANADA, HONGKONG, JAPAN, NEW ZEALAND, SINGAPORE OR SOUTH AFRICA OR IN ANY
JURISDICTION IN WHICH THE DISTRIBUTION OF THIS RELEASE WOULD BE UNLAWFUL

The English text is an unofficial translation of the Swedish original and in
case of any discrepancies between the Swedish text and the English
translation, the Swedish text shall prevail. This is not a legal document.

Nordic Mines AB (publ) ("Nordic Mines" or "the Company") presents a
preliminary financing solution and resolves on terms for share issues to
restart the Laiva mine and exit company reorganizations in Sweden and
Finland.
The financing solution implies:

* Target to reach a settlement of a debt write-down to EUR 15m (circa SEK
135m) with the Company's current lenders.
* Target to reach a settlement with the suppliers including a 90 percent
write-down of outstanding debt.
* Cash contribution of at least SEK 150m.

Discussions with current lenders
Nordic Mines negotiates with the Company's current lenders, Unicredit Bank AG,
Bank of America Merrill Lynch Intl Ltd and Finnvera Plc, to reach a
settlement intended to reduce the debt level of the Company. The lenders have
responded positively to a settlement which essentially involves the
following:

* Significant write-down of the existing loans to EUR 15m (circa SEK 135m),
of which approximately EUR 2.5m (circa SEK 22.5m) will be converted into
shares through a set-off issue. The terms for the set-off issue will be the
same as for the rights issue, explained below (resulting in 750,000,000 new
shares in Nordic Mines, representing circa 10 percent of the total shares
outstanding if the rights issue becomes fully subscribed).
* Remaining loans of EUR 12.5m (circa SEK 112.5m) have a term to maturity of
five years and will be amortized during yeas 3-5. The interest will be
accumulated and added to the debt during the first two years, followed by
cash interest payment during years 3-5.

The final settlement is conditional on that the parties agree on the final
contract documentation, among other things. The Board is, until the day
before the record day (i.e. May 4, 2014), entitled to withdraw the rights
issue. The Board also intends to utilize this option in the event that the
Board's judgment is that the negotiations on the final contract documentation
have not progressed satisfactorily.

Proposed composition plan
As part of the ongoing company reorganization, the Company will work to ensure
that a composition is proposed regarding unsecured creditors. For all the
unsecured creditors within the group, the composition would imply full cash
payment of receivables up to EUR 1,000 (circa SEK 9,000) and a 10 percent
payment of excess amount.

The Board resolves on terms for cash contributions through share issues of at
least SEK 150m
On March 26, 2014, Nordic Mines announced that the Board has resolved, subject
to the EGM's subsequent approval, to strengthen the Company both
operationally and financially through share issues. On April 27, 2014 the
Board resolved on the final terms for the share issues and the amendment of
the articles of association as described below.

The EGM will be held in Uppsala on April 28, 2014, 11:00 am (CET). The notice
for the EGM was published on March 26, 2014 and is available on Nordic Mines
website,www.nordicmines.com.

Proposals for resolution etc.

7 (c) Amendment of the articles of association
The Board proposes that the EGM resolves that the paragraphs 4 and 5 in the
articles of association should have the following wording.

Limits for the share capital (§ 4 in the Articles of Association)
The share capital may not be less than SEK 195,000,000 and not be more than
SEK 780,000,000.

Limits for the number of shares (§ 5 in the Articles of Association)
The number of shares may not be less than 3,000,000,000 shares and not more
than 12,000,000,000 shares.

7 (d) Private placement
The Board resolves on the following terms regarding the private placement to
long-term investors:

* The share capital shall be increased by a maximum of SEK 30,000,000.
* The number of shares shall be increased by a maximum of 3,000,000,000.
* For each new share, SEK 0.03 will be paid.

This private placement aims to enable the Board to continue to evaluate the
possibility to let long-term investors, identified by the Company with
assistance of their financial advisor, subscribe for shares in the Company.
The Board intends to allot shares in this private placement only if the Board
expects the subscription level of the rights issue to be insufficient.

7 (e) Private placement
The Board resolves on the following terms regarding the private placement to
the Company's creditors:

* The right to subscribe for shares will be limited to UniCredit AG, Bank of
America Merrill Lynch Intl Ltd, and Finnvera Plc (or their related
parties).
* The share capital shall be increased by a maximum of SEK 7,500,000.
* The number of shares shall be increased by a maximum of 750,000,000.
* For each new share, SEK 0.03 will be paid through set-off of current debt.

7 (f) Rights issue
The Board resolves on the following terms regarding the rights issue:

* The share capital shall be increased by a maximum of SEK 64,831,220.88 and
a minimum of SEK 50,000,000.
* The number of shares shall be increased by a maximum of 6,483,122,088 and a
minimum of 5,000,000,000.
* For each share owned on the record day, 19 subscription rights shall be
obtained and 1 subscription right entitles to 1 new share.
* For each new share, SEK 0.03 shall be paid.

If the Company concurrently with the rights issue, receives other capital
(equity or debt), which together with the proceeds of the rights issue is at
least SEK 150m, the increase in share capital and number of shares as a
result of the rights issue shall nevertheless be a minimum of SEK 30,000,000
and 3,000,000,000 shares, respectively.

The subscription price represents a discount of circa 75 percent compared to
the closing price of Nordic Mines share on April 25, 2014 on NASDAQ OMX
Stockholm.

The resolution regarding the rights issue, if approved by the EGM, will also
be terminated if the Company's share capital is not increased by at least the
minimum amount stated above. Already paid subscriptions will in that case be
repaid.

The record date at Euroclear Sweden AB for receiving subscription rights is
May 5, 2014. The subscription period will be between May 8, 2014 and May 22,
2014 or such later date as determined by the Board.

Timetable for the rights issue

----------------------------------------------------------------------------------------------------
|April 28, 2014 EGM to approve the Board's resolution on the share issues |
|April 29, 2014 Last trading day in shares with preferential right to participate in the |
| rights issue |
|April 30, 2014 First trading day in shares without preferential right to participate in the |
| rights issue |
|May 5, 2014 Record date for participating in the rights issue. Shareholders that as of |
| this date are registered in Nordic Mines share register will receive |
| subscription rights for participation in the rights issue |
|May 7, 2014 Estimated date for publication of the prospectus |
|May 8 - May 19, 2014 Trading in subscription rights |
|May 8 - May 22, 2014 Subscription period |
----------------------------------------------------------------------------------------------------
Background and rationale
In July 2013, the Board chose to apply for company reorganization. The work
during the reorganization has essentially followed the plan previously
presented on the creditors' meeting. The Company has since its entering into
company reorganization conducted operations based on the economic conditions
given and several uncertainties.

The Company has, with assistance of the updated mineral resource and proposed
actions regarding mining and milling conducted by SRK Consulting (UK) Ltd,
worked out a business plan with the purpose to strengthen Nordic Mines
operationally through higher grades, and more cost efficient mining and
efficiency improvements in the mill. Parallel to this, negotiations with
current lenders, suppliers, and potential investors, have been held in the
context of reorganization and current proposed solutions are expected to
enable a restart of the mining operations and implementation of the business
plan.

The business plan indicates a positive cash flow over the life of mine on
current gold price level. A restart of the mining operations is however
entirely dependent that sufficient external funding is obtained. The Company
estimates that circa SEK 150m is needed to restart the mining operations and
create the right conditions for the implementation of the business plan.

The proceeds from the share issues will be used to:

* Financing of the composition plan to the unsecured creditors.
* Non-recurring costs of SEK 25m related to the restart of the operations.
* Investments of SEK 30m related to the business plan immediately required by
the restart of the operations.
* Increase of working capital in association with the restart of the
operations. The Company estimates that SEK 35m is required for this.
* Liquidity reserve for unforeseen costs associated with the restart of the
mining operations.

Financial and legal advisors
Evli Bank Plc is acting as financial advisor to Nordic Mines and
Gernandt&Danielsson Advokatbyrå KB is acting as legal advisors.

For additional information, please contact:
Thomas Cederborg, CEO, +46 708 480 521
Jonatan Forsberg, CFO, +46 761 051 310

For more information about Nordic Mines, please visit;www.nordicmines.se

The information above has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 08:00 am (CET) on April 28, 2014.

Nordic Mines is a Nordic mining and exploration company whose vision is to be
one of the leading gold producers in the Nordics and Europe and a role model
in respecting the environment. The company started mining gold in the Laiva
mine in Finland in summer 2011. These gold deposits are among the largest in
the Nordic region. Exploration is...

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