Nordic Mining together with the other shareholders of Keliber Oy ("Keliber") have decided to investigate opportunities for direct fund raising in Keliber through an equity issue. Up to EUR 10 million in new equity is targeted with the purpose to finance Keliber's pre-investment activities including Definitive Feasibility Study ("DFS") and arrangement of project financing. If successful with the contemplated financing, Keliber's target is to produce the DFS and to have an investment decision before year-end 2013.

Keliber has mining concession and environmental permit for mining at its Länttä deposit in the Ostrobothnia lithium province. Keliber holds several exploration rights in the surrounding area and has in addition to the JORC compliant ore reserves in Länttä also reported ore reserves at its deposit in Outovesi. Further, Keliber has permits for its processing plant for lithium carbonate at Kalavesi which is approximately 16 km from Länttä.

Keliber has an ongoing exploration program and expects to qualify additional deposits in the same area for resource/reserve classification and possible future production.

Keliber plans to be the first producer in Europe of high-grade lithium carbonate. Lithium carbonate is used i.a. in modern batteries, ceramics and in various other industrial applications. Electrification of vehicles (EV, HEV, scooters etc.) is expected to drive the demand for high-grade lithium carbonate significantly in the coming years. Keliber has demonstrated in pilot production that high-purity lithium carbonate of +99.9% can be produced. Keliber's product quality will be excellent for advanced battery applications. Keliber is expected to be a highly competitive producer of high-purity products.

Öhman Securities in Helsinki has been assigned to coordinate and manage the fund raising process. Öhman Securities' general contact with potential investors in Finland and elsewhere indicate a promising interest for "green-tech" mineral companies.

Keliber targets a closing of the financing process by year-end 2011 or early 2012. In its own discretion Keliber can conclude or extend the time period for the process in accordance with investor interest and market development.

Öhman Securities is available for dialogue and questions in connection with the equity issue. Please contact Manager in Öhman Securities Veli-Matti Parkkonen, telephone +358 988666039 (office) or + 358 405009878 (mobile).

Assuming that the targeted equity financing is fully achieved, and assuming also that Nordic Mining is not participating in the issue, Nordic Mining's shareholding in Keliber will be diluted from the current 64.6%.  

For questions please contact CFO Lars K. Grøndahl, telephone +47 90160941.

Nordic Mining ASA
Nordic Mining ASA ("Nordic Mining" or "the Company") is a resource company with operating activity and focus on high-end industrial minerals and metals in Norway and internationally. The Company's project portfolio is of high international standard and holds a significant economic potential. Nordic Mining has rights to advanced EM-applications (electro magnetic technology) for mineral and metals exploration onshore and offshore. The Company's assets are mainly in the Nordic region.

The Company has production of anorthosite products through its subsidiary Gudvangen Stein AS ("Gudvangen Stein"). Further, Nordic Mining is undertaking large-scale project development at Engebøfjellet in Sogn and Fjordane where the Company has rights to a substantial eclogite deposit with rutile and garnet. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad municipality in Hordaland county. Through its subsidiary Keliber Oy ("Keliber") in Finland, Nordic Mining plans to start mining of lithium bearing spodumene and production of lithium carbonate.

Nordic Mining is listed on Oslo Axess.

Oslo, 25 November 2011

Nordic Mining ASA

 

 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.