Nordic Mines AB (publ): Marknadsuppdatering from Nordic Mines

Marknadsuppdatering from Nordic Mines

During the weekend of Saturday 6 may Sunday 7 may 2017, it has come to Nordic Mines AB’s (publ) (“Nordic Mines” or the “Company”) attention that certain confidential and price-sensitive information reached the public without the company’s knowledge, and which was circulated on the Internet. The company informed immediately the Nasdaq Stockholm exchange (“Nasdaq”) immediately before the stock market opened on may 8, 2017 and the company’s shares handelsstoppades.

Given the confidential information that is circulating on the Internet to Nordic Mines to clarify the following:

• On may 4, 2017, the Company received an e-mail with a “bid” to the transaction with Firesteel Resources Inc. (Firesteel) from Nordic Mines ‘ largest shareholder, Lau Su Holding AB the Offer is to subscribe for a certain percentage of a new issue. Lau Su’s “bid” was not in a form that the company’s board of directors could consider, mainly because it lacked reasonable details that the board must have in order to be able to make a decision. In addition, it requested the Company to Lau Su would clarify its sources of funding in the “motbudet” and to provide enough details concerning the company’s and its future. The company therefore suggested that the Lau Su would write if the bid and bring it forward via a recognised marknadsmotpart. The original “motbudet” made via e-mail was quickly returned of the Lau Su Holding AB

   

• Lau Su Holding AB has said that they intend to submit a new, formal proposal this week. If such an offer will and is in such a form that it is considered by the directors in Nordic Mines, the market will be informed about it.

   

• At the end of april 2017 on the other had Nordic Mines a meeting with the environmental authorities in Finland in respect of an application for a permit in respect of the clearing of material from a third party. It was an informal meeting without any formal results. The non-binding indication as to what transpired during the meeting was that the authorities can allow that 18 per cent of the material transported to the processing plant in Laiva could have come from a third party.

   

• Management of all external materials would mean data processing, analysis, läcktester m.m. and thus constitute an appreciable burden on the company. The environmental authorities can decide themselves to the new övervakningsparametrar depending on the quality of the external material. In addition, a new water purification system for the processing of external material.

   

• He notes the Company that

There are few potential assignments within a short enough distance from Laiva, which means that the material from the third party would be able to clear customs economically in Laiva,

Nordic Mines does not currently have any deals on material delivery to the plant, and

The plant can not be operated economically with the delivery of the material from a third party that represents only 18 percent of the plant’s capacity, and would thus be dependent on ore from the laiva mine.

• Malmsortering: the Company believes that the use of malmsortering with the laser can make a substantial difference for Laivaanläggningens economy, the Company has accounted for all of the test results identified so far. More work is needed to determine whether or not you are going to put into malmsortering in Laivaflödet. Until the work is done, the Company could not definitively conclude that the malmsortering works.

   

• The communicated transaction with Firesteel has been approved by the company’s board of directors, pending the completion of certain conditions preceding, as announced on 10 april 2017 The first part of the settlement with Firesteel (where the Firesteel will buy 10 per cent of Nordic Mines ‘ Market to an amount of eur 1 million) is conditional upon the following “conditions”:

   

  • To the shareholders representing the shareholders of Lau Su-group, supports the agreement with FDR by signing a röststödsavtal

  • To Lau Su-the group signs a frysningsavtal in respect of its loan to the Company and agree that the amount of the loan to be repaid by the Firesteel either in shares or as cash after Firesteels own choice.

  • That the Company allows the Firesteels management to take control over the management of the Laiva mine under the terms of a management agreement, whose continuation is conditional to the next 20 million canadadollar invested in Nordic Mines Market.

  • That the Company would grant the Firesteel an option to buy a further 50 per cent of Nordic Mines ‘Market, provided that the Firesteel is investing a further 20 million canadadollar, and according to the terms of a shareholders’ agreement which shall be signed by the Company and an extraordinary general meeting, where shareholders will have the opportunity to vote on the Firesteel-the proposal.

     

• According to the communication on 10 april 2017, the Company may confirm that it is making good progress in the documentation, and that the original settlement is now under consideration of the Lau Su:s the group’s shareholders, all of which – with the exception of the Lau Su myself – have said they will support the Firesteel settlement. However, even if the Firesteel has not yet received the signed contracts on röststöd mentioned here, has the Firesteel under the agreement with the Company on 2 may 2017 sent you the first payment of 200 000 euros, which is a part of the eur 1.0 million, which makes it possible for the Firesteel to acquire 10 per cent of Nordic Mines ‘ Market AB Firesteel published a press release on 3 may 2017, which stated that it has completed the first payment of 200 000 euros.

   

• The company has received many questions from shareholders who want to know more about the Firesteel agreement and has therefore published a detailed Q&A on its website, where the agreement carefully explained.

   

   

• In addition to the CEO of Firesteel, the Company will provide shareholders with the opportunity to meet the members of the board and management on Tuesday 16 may 2017. The location for the meeting is determined during the next 24 hours. The purpose of the meeting is to discuss the prospects of the Company and the Laiva mine. If the Company, at the time, scored Lau Su’s “counter-offers”, the Company will be happy at the same forum to discuss the benefits, even with the proposal with the shareholders.

The company’s liquidity position is strained and in need of financing to stay afloat. The company s looked at many different options, but for the present Firesteel is the only option. If other offers come, it is obvious that the Company’s board of directors evaluates them and suggests the best option for shareholders.

For further information, please contact:

D. Saradhi Rajan, CEO: Tel.: +44 743 271 1564

Ole Eikeland: Tel.: +47 900 60 666

More information about Nordic Mines is available on the website www.nordicmines.com.

This information is such that Nordic Mines AB (publ) shall publish in accordance with the EU marknadsmissbruksförordning. The information was submitted for publication by the above contact person; care for publication at 15:00 CET 9 may 2017.

Nordic Mines is a nordic mining and exploration companies. At the laiva mine in Finland, produced gold during the years 2011 to 2014, the Deposit is one of the largest in the Nordic region. Nordic Mines is a member of SveMin and applying its reporting rules for public mining and exploration companies. The Nordic Mines share is traded on Nasdaq Stockholm Small Cap list. See also www.nordicmines.com.

20170509 NOMI Press Release see