Dannemora Mineral’s subsidiary Magnetit presents composition proposal
Dannemora Magnetit AB, the subsidiary of Dannemora Mineral AB where the majority of the operations is conducted, today presented a composition proposal for their unsecured creditors, in which the creditors would receive 25 per cent in payment for their debts. This would be paid within 12 months of the completion of the reconstruction. The remainder of the debt would be written off through the proposed composition.
The composition proposal is only part of the solution if the Dannemora Group is to be reconstructed and avoid bankruptcy. The Dannemora Group will only be able to be reconstructed if the financial negotiations that are currently underway can be completed according to plan and if a private agreement can be reached with the creditors in the parent company, Dannemora Mineral AB. As a public composition is needed for Dannemora Magnetit AB, legal proceedings are required, which take time. This means that these proceedings have to be initiated before knowing whether the financial negotiations can be completed according to plan and whether a private agreement can be reached in the parent company.
For further information, please contact:
Ralf Nordén, President and CEO
Telephone 46 70 937 48 91
Karl Ove Grönqvist, acting CFO
Tel 070 283 5307
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 intends to engage in exploration activities to increase the iron ore base locally and regionally.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 Advisor 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.