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: