(A translation from Swedish)
Nordic Mines today filed for corporate reorganization of the Swedish parent company and all non-dormant subsidiaries. The objective with the corporate reorganization procedure is to model a future profitable low-cost production and to find a strategic partner or acquirer to the operations at the Laiva project in Finland.
The reorganization procedure concerns the Swedish parent company Nordic Mines AB (publ) and its subsidiary Nordic Mines Marknad AB as well as the Finnish subsidiary Nordic Mines Oy. The lawyer Håkan Rudström, at the law firm Lindahl KB, is suggested as administrator for the two first mentioned companies and lawyer Mika Salonen, at the law firm Attorneys at Law Borenius Ltd in Finland, for the Finnish subsidiary.
The corporate reorganization procedure is a consequence of that the operations at the Laiva mine in Finland has been loss making since the production start, first quarter 2012. The Finnish subsidiary's liquidity, after amortizations at the end of June 2013, is strained. In addition, the sales income has been negatively impacted from the material decrease in gold price during the second quarter.
The gold production during the second quarter was 343 kilos, which is the highest quarterly production since start, but lower than planned. The lower production is mainly due to a continued low head grade. Despite continuous development work, with several attempts and tests regarding mining methods, the company has not been successful in increasing the head grade to a sufficient level. The mineralization at Laiva has proven to be that the ore is difficult to mine without getting too high waste dilution/ore loss.
The objective with the corporate reorganization procedure is to model a low cost production considering a lower head grade and thereby reach a profitable mining operation and to find a strategic partner or acquirer. This way the company will have time to continue the process within the frame of the original action plan decided by the Board in November 2012. Provided that the Finnish court approves the filing for corporate reorganization, the Finnish subsidiary has the intention to call for negotiations with employee representatives.
A complete production report for the second quarter will be published according to plan 11 July 2013, and the financial quarterly results report will be published 8 August 2013.
For further information, please contact:
Thomas Cederborg, CEO, +46 708 480 521
Susanne Andersson, CFO, +46 730 668 904
For further information regarding Nordic Mines, please connect to www.nordicmines.com (http://www.nordicmines.com/)
The information above has been made public in accordance with the Securities Market Act and/or Financial Instruments Trading Act. The information was published at 08.00 (CET) on July 8, 2013.
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 in progress in Finland and in Sweden. Nordic Mines was established 2005 and have more the 100 employees with head office in Uppsala, Sweden, The Nordic Mines share is traded on the Nasdaq OMX Small Cap list in Stockholm.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic Mines AB via Thomson Reuters ONE