New share issue in Dannemora Mineral brings SEK 103.5 million

 NEW SHARE ISSUE IN DANNEMORA MINERAL BRINGS SEK 103.5 MILLION

After the close of the stock exchange on 15 March 2012, Dannemora Mineral implemented a private placement targeting Norwegian and other international investors. The share issue generated SEK 103,500,000 before share issue expenses.

The issue was subscribed to 133 %. A total of 1,500,000 class B shares were allotted at a price of SEK 69.00 per share. The subscription price is 4 percent higher than the average closing price for the Companys share in the most recent 10 trading days on the Stockholm Stock Exchange.

The share issue has been implemented to meet the changes in the companys cash flow caused by the increased investment volume and changes in the working capital as previously communicated by the company.

Staffan Bennerdt, CEO and President of Dannemora Mineral: "The share issue means that we now have secured the capital requirement for financing the Dannemora iron ore mine in the period until a positive cash flow is achieved."

Following the share issue, the number of shares in Dannemora Mineral is 15,360,400, with the newly issued shares representing 9.8 percent of capital and 5.7 of the votes. The Companys share capital will increase from SEK 2,217,664 to SEK 2,457,664.

Swedbank First Securities AS has acted as Dannemora Mineral ABs financial adviser on the private placement.

The Press Release can be downloaded from the link below:

 

 

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.