STOCKHOLM, Sweden, Dec.27, 2016 /PRNewswire/ --Mining Associates, a highly respected, independent, international mining Consulting and Investment firm, has by a directed share issue, throughits100% ownedsubsidiaryEuroMin Limited subscribed for the First Subscription of 1,398,572 Shares at a price of SEK 3.5/share.
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").
The Directed Share Issue
The Board of Directors of the Company has 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. The First Subscription is paid to the Company; 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.
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 27th 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 or www.silver.fi
Read more about Mining Associates on www.miningassociates.com
CONTACT:
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The following files are available for download:
http://mb.cision.com/Main/15292/2157097/608470.pdf | Press release (PDF) |
