Nidhogg Resources Holding AB (publ) submits consultation material as part of the plan for trial mining at the Vintjärn mine and increases ownership by 10% in Big Rock Mineral AB
Nidhogg Resources Holding AB (publ) (“The Company”) has today submitted consultation material to the County Administrative Board in Dalarna as part of an Environmental Impact Assessment (”EIA”) and the plan to initiate trial mining at the Vintjärn mine. Consequently, the Company owns ten percent (10%) of Big Rock Mineral AB (“BRM”) through the Earn-In Agreement (“Agreement”) entered into between the Company and Big Rock Energy AB (“BRE”) on May 29, 2024.
According to the Agreement, the Company will incementally increase its ownership in BRM. The first step has already been achieved with the submission of the EIA application to the relevant authority. The next step will occur when the trial mining permit is granted, followed by the final step when trial mining begins. The Company will then own fifty percent (50%) and one hundred percent (100%) of BRM respectively. In the final stage, BRE retains a Net Smelter Royalty (“NSR”) of five percent (5%) of the revenues from iron sales and three percent (3%) from the sale of other metals and minerals from BRM.
The Company has the option to acquire the NSR from BRE on market based terms. The valuation of this transaction will be carried out by an independent third party, ensuring fair and accurate pricing. This provides the Company with flexibility in managing its future revenues and maximizing the value from its operations.
The term NSR is often used in mining and resource-related transactions, and in this Agreement, it means that costs for smelting, refining, transportation, and insurance are deducted before payment to BRE.
The Company plans to trial mine up to 0.2 million tons of ore with a start in 2025. The ore has average grades of thirty-five percent (35%) iron and half a percent (0.5%) manganese according to the Geological Survey of Sweden.
“It is gratifying to see that we can already submit consultation materials for Vintjärn as part of the EIA process and maintain momentum with the help of the data and information we already possess to trial mine the proven ore from the mine”, says Niclas Biörnstad, CEO in Nidhogg Resources Holding AB (publ).
For more information about the Kölen Vintjärn project, see the Company’s press releases from July 19 and June 4, 2024.
Contact
Ulrich Andersson, Chairman of the Board, Nidhogg Resources AB (publ)
Email: ulrich@nidhoggresources.com
Phone: +46 70 376 0515
Or
Niclas Biornstad, CEO, Nidhogg Resources AB (publ)
Email: niclas@nidhoggresources.com
About Nidhogg Resources Holding AB (publ)
Nidhogg Resources Holding AB (publ), www.nidhoggresources.se, is a Swedish public limited company focused on raw materials. Nidhogg was founded by individuals with a total of over 60 years of experience in the commodities market, with backgrounds ranging from exploration to exploitation and sales, and a passion for extracting raw materials by applying innovative technology along with existing infrastructure.
Nidhogg Resources estimates that trial mining of ore in Tuna-Hästberg and Vintjärn-Kölen, mines that were closed in the 1960s and 70s, may result in positive cash flow as early as the end of 2025.