Bli medlem
Bli medlem

Du är här

2016-12-16

Sotkamo Silver: SOTKAMO SILVER HAS RESOLVED TO DIRECT 10,311,277 SHARES (EURO 3.6 MILLION) TO EUROMIN LIMITED, WHICH HAS ALSO UNDERTAKEN TO LEND A EURO 2 MILLIO

Mining Associates, a highly respected, independent, international mining
Consulting and Investment firm, has completed its technical due diligence and
an extensive independent review of the economic model of the Silver Mine
Project, including its CAPEX and OPEX costs. Mining Associates has concluded
that the Sotkamo Silver project has a reliable economic model and a clear
plan for mine development.

After the successful completion of it’s technical due diligence, Mining
Associates has decided, via its 100% owned subsidiary EuroMin Limited, to
subscribe shares in Sotkamo Silver AB (the “Company”) through a directed
share issue of Euro 0.5 million (“First Subscription”). Additionally, by 31st
January 2017, through a subsequent directed share issue, EuroMin can invest
Euro 3.2 million (“Second Subscription”). The subscription price of each
share is SEK 3.50 (circa Euro 0.35) in both Subscriptions, totalling SEK
36,089,469.5 (Euro 3.7 million) of equity investment (“Equity Investment”).

Following the fully subscribed Equity Investment, the Company’s Nomination
Committee will propose to the Annual General Meeting the nomination of Mr.
Greg Paholski to the Board of Sotkamo Silver AB. Mr. Paholski has significant
technical expertise in mine development and mine operations. Sotkamo Silver
Oy has also accepted Greg as Head of the Technical Steering Committee (the
“TSC”) being created to oversee the construction of the Silver Mine. The TSC
will report to the Board of Sotkamo Silver Oy, the Finnish operating
subsidiary of the Company.

In addition to the Equity Investment, Mining Associates has undertaken to
provide a subordinated Euro 2 million loan, latest 20 March 2017, as
described below, subject to agreed loan documentation.

The Directed Share Issue

The Board of Directors of the Company has on this day resolved, under an
authorization granted by the Annual General Meeting on 17 March 2016 and
registered at the Swedish Companies Registration Office on 24 March 2016, to
issue 10,311,277 shares to EuroMin Limited. The right to subscribe for the
shares shall, with derogation from the shareholders’ pre-emption rights, only
vest in EuroMin Limited.

EuroMin Limited aims to own about 9.1 % of the shares outstanding and
respective voting rights after the Equity Investment and the registration of
the new shares issued to EuroMin Limited.

The subscription price of each share in both tranches is SEK 3.50 (circa Euro
0.35), in total SEK 36,089,469.5 (Euro 3.7 million) with fully subscription.
The investment can be made in two subscriptions:

* First Subscription: EuroMin Limited has subscribed for 1,398,572 Shares at
a price of SEK 3.5/share for a total investment of SEK 4,895,002 to be paid
to the Company before 23rd December 2016; and
* Second Subscription: EuroMin Limited aims to subscribe for 8,912,705 shares
at a price of SEK 3.5/share for a total investment of SEK 31,194,467.5, to
be subscribed on or before 31st January 2017, and paid to the Company at
latest on 8 February 2017.

Both EuroMin Limited, and its parent company Mining Associates Limited, are
registered in Hong Kong, where Mining Associates is headquartered.

The main motivation for the Equity Investment is that it is deemed important
and in the Company's interests to bring one new major shareholder with
extensive global mining knowledge into the Company and to secure financing
necessary for the development of its Silver Mine. The Board of Directors of
the Company and Mining Associates believe that the subscription price
corresponds to the shares market value before the investment.

The Subordinated Loan Agreement

Mining Associates has undertaken to lend the Company Euro 2,000,000, by 20
March 2017, conditional on the parties agreeing on loan documentation.

The Subordinated Loan (the “Loan”) shall carry an annual interest equal of
twelve (12%) percent; the interest will be paid on a semi-annual basis. The
Loan has a maturity of three (3) years after the Drawdown.

MMG Capital Limited (“MMG Capital”) acted as Corporate Finance Advisor to
Sotkamo Silver AB on the Equity Investment and on the Loan.

"After the Mining Associate’s detailed review of our Feasibility Study and its
economic model and their positive conclusions reconfirming the attractiveness
and the merits of our Silver Project, I am very confident to complete the
construction phase of the Silver Mine project as planned. This confidence is
reinforced by the investment decision of Mining Associates, and we are
delighted to have Mining Associates as a new major shareholder and technical
support in the Company. We are encouraged that Mining Associates’ broad
technical mining knowledge and global experience brings additional value to
our operations going forward.

Our ambition is that all building and construction works shall be completed by
the end of 2017, with the aim to reach full production during the first half
of 2018".
Says Timo Lindborg, CEO of Sotkamo Silver AB

“After a detailed study over 6 months of Sotkamo Silver’s plans and the
economic model of their Silver Mine project, Mining Associates has decided to
invest in the Company. We are delighted to have reached a binding agreement
with the Company. Mining Associates Director of Operations has spent
November 2016 working with the Company to create a detailed “Implementation
Plan” for the construction of the Sotkamo Silver mine. Through this
investment Mining Associates is gaining exposure to a very attractive mining
project, and Sotkamo Silver can draw upon the collective experience of dozens
of highly experienced mining professionals. We look forward to becoming
active part of the Management Team of the company and to bringing our core
technical expertise, gained through mining projects completed around the
world, to support the development and future operation of the Sotkamo Silver
mine."
Says Tony Page, CEO of Mining Associates.

About Mining Associates:

Mining Associates is a leading global geological, resource and mining
consultancy, headquartered in Hong Kong, with offices in Australia, United
Kingdom and Canada. Our Consulting Business provides expert technical advice
across a wide range of mineral commodities, geological settings and mining
methods on a diverse range of projects globally. Our technical skills range
from exploration to full feasibility studies, mine development, mining
operations and closure.

Mining Associates capital arm seeks projects where we see capital value growth
opportunities or short paths to production and cash flow. Mining Associates
unlocks value in mineral assets by expanding resources, merging assets,
solving technical roadblocks or revising development concepts.

The final Implementation Plan for the Sotkamo Silver mine developed jointly
with Mining Associates will be made available on the Company’s web-page.

Stockholm, December 16th 2016

Timo Lindborg, CEO

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

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

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the
Nordic countries with positive social and environmental benefits. Sotkamo
Silver owns mineral deposits, which contain silver and gold in Finland as
well as zinc and gold in Norway. 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.

Number of shares and votes are 103,215,990 before the registration of this
issue at the Swedish Companies Registration Office. Number of shares and
votes after the registration of this issue is 113,527,267.

The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ OMX
Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

ISIN- code for share warrants series 2016/2017 are SE0008373880

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

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

Read more about Mining Associates onwww.miningassociates.com

Författare NGN

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.