New share issue in Dannemora Mineral brings SEK 150 million

 NEW SHARE ISSUE IN DANNEMORA MINERAL BRINGS SEK 150 MILLION

After the close of the stock exchange on 24 March 2011, Dannemora Mineral implemented a private placement targeting Norwegian and other international investors. The share issue generated SEK 150 million before share issue expenses.

The issue was subscribed to 126%. A total of 2,000,000 class B shares were subscribed for at a price of SEK 75.00 per share. The subscription price is 6 percent higher than the average closing price for the Company's share in the most recent 10 trading days on the Stockholm Stock Exchange.

Staffan Bennerdt CEO and President of Dannemora Mineral: "The share issue means that total funding for the re-opening of the iron ore mine in Dannemora has now been secured."

Following the share issue, the number of shares in Dannemora Mineral is 13,860,400, with the newly issued shares representing 14.4 percent of capital and 8.1 of the votes. The Company's share capital will increase from SEK 1,897,664 to SEK 2,217,664.

First Securities AS has acted as Dannemora Mineral AB's financial adviser on the private placement.

The Press Release can be downloaded from the link below: