New share issue in Dannemora Mineral brings SEK 87 million

NEW SHARE ISSUE IN DANNEMORA MINERAL BRINGS SEK 87 MILLION

After the close of the stock exchange 28 of April, Dannemora Mineral implemented a private placement targeting Norwegian investors. The share issue generated SEK 86 875 000 before share issue expenses.

The share issue was oversubscribed by 66 percent. A total of 1.250.000 class B shares were subscribed for at a price of SEK 69,50 per share. The subscription price is 3 percent lower 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 11.760.000, with the newly issued shares representing 10,6 percent of capital and 5,6 percent of the voting power. The Company's share capital will increase from SEK 1,681,600 to SEK 1,881,600.

Staffan Bennerdt: "The share issue considerably reduces our remaining requirement for equity and strengthens us in the impending loan financing negotiations."

Dannemora Mineral has applied for a listing of the company´s class B shares on the Oslo Stock Exchange (Oslo Axess). To comply with the requirements on the Oslo Stock Exchange a public offer with a fair spread is a prerequisite. To be able to fulfil this requirement the board of director´s has requested the annual general meeting (held on 3 of May) for an authorization to issue 1 million class B shares without preferential rights for shareholders.

Assuming prevailing favourable market conditions the boards assessment is that the completed equity issues during this spring together with the authorization to issue 1 million class B shares enables the company to raise sufficient equity to carry out the Dannemora mining project.

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: