New share issue in Dannemora Mineral brings SEK 165 Million

NEW SHARE ISSUE IN DANNEMORA MINERAL BRINGS SEK 165 MILLION

After the close of the stock exchange 25 of March, Dannemora Mineral implemented a private placement targeting Norwegian and other foreign investors. The share issue generated SEK 165 million before share issue expenses.

Staffan Bennerdt CEO and President of Dannemora Mineral: "The share issue will allow us to bring forward certain time-critical investments in transport ramps and mine exploration. With iron ore prices experiencing strong growth at present, we aim to be in production as quickly as is possible."

A total of 2.750.000 class B shares were subscribed for at a price of SEK 60 per share. The subscription price is 7 percent higher than the average closing price for the Company's share over the last 10 trading days on the Stockholm Stock Exchange.

Following the share issue, the number of shares in Dannemora Mineral is 10.510.000, with the newly issued shares representing 26.2 percent of capital and 12.9 of the voting power. The Company's share capital will increase from SEK 1,241,600 to SEK 1,681,600.

Staffan Bennerdt: "The share issue covers a large proportion of our remaining requirement for equity and strengthens us in the impending loan financing negotiations."

Dannemora will apply for a listing of the newly issued shares on the Oslo Stock Exchange (Oslo Axess). To allow trading in the share before the listing on Oslo Axess, the application for registration on the OTC market in Norway will be made as soon as possible.

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

The Press Release can be downloaded from the link below: