Dannemora Mineral's bondholders approve waiver

  • On 25 February, Dannemora asked bondholders in the Company's USD 120 million bond issue to grant a waiver from the bond agreement's two covenants. This is also a condition for the rights issue of SEK 211 million before issue expenses, which Dannemora's Board adopted subject to approval by an EGM to be held on 13 March.
  • At today's meeting at Norsk Tillitsmann in Oslo, the bondholders decided to accept Dannemora's waiver of covenant request.

Dannemora Mineral has a five-year bond issue of USD 120 million which was launched on 18 March 2011. The bond agreement contains two covenants:

1. Net debt/EBITDA ratio of not more than 4.0; and
2. Minimum liquidity of SEK 50 million

At today's bondholders' meeting, the decision was made to grant a waiver from the first covenant (Net debt/EBITDA ratio of not more than 4.0) until 31 December 2014 and a waiver from the second covenant (minimum liquidity of SEK 50 million) to May 1, 2013 until the issue proceeds have been received.

Notice from bondholders meeting

For further information, please contact:

Ralf Nordén, President and  CEO
Telephone 46 709374891
ralf.norden@dannemoramineral.se

or

Niklas Kihl, CFO
Telephone 46295 - 24 44 20, 46730 797 363
niklas.kihl@dannemoramineral.se

Dannemora Mineral AB is a mining and exploration company of which the primary activity is mining operations in the Dannemora iron ore mine. The Company also engages in exploration activities to increase the iron ore base locally and regionally where the potential for finding mineable deposits is considered good.

Dannemora Mineral comprises the Parent Company Dannemora Mineral AB and the wholly-owned subsidiaries Dannemora Magnetit AB (responsible for operation of the Dannemora mine and the Group’s exploration activities) and Dannemora Förvaltnings AB (responsible for the property portfolio).

The Company’s most important asset is the iron deposit in the Dannemora Mine, and activity is focused mainly on the mining of this deposit at present.

The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The Company's Certified Adviser on First North is Remium Nordic AB. 

The Company's independent qualified person is mining engineer Thomas Lindholm, Geovista AB, Luleå. Thomas Lindholm is qualified as a Competent Person as defined in the JORC Code based on education and experience in exploration, mining and estimation of mineral resources of iron, base and precious metals.

About Us

Dannemora Mineral AB is a mining and exploration company of which the primary activity is mining operations in the Dannemora iron ore mine. The Company also engages in exploration activities to increase the iron ore base locally and regionally, and to explore for base and precious metals in several areas in Uppland where the potential for finding mineable deposits is considered good. Dannemora Mineral comprises the Parent Company Dannemora Mineral AB and the wholly-owned subsidiaries Dannemora Magnetit AB (responsible for operation of the Dannemora mine and the Group’s exploration activities) and Dannemora Förvaltnings AB (responsible for the property portfolio). The Company’s most important asset is the iron deposit in the Dannemora Mine, and activity is focused mainly on the mining of this deposit at present. The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The Company's Certified Adviser on First North is Remium AB.