CONTEMPLATED DIRECTED ISSUE OF NEW SHARES IN NORDIC MINING ASA
Nordic Mining ASA has retained Carnegie ASA and Handelsbanken Capital Markets to advise on and effect a contemplated directed issue for an amount up to NOK 50 million in favour of Norwegian and international professional investors after the close of Oslo Axess today. The placement will be carried out through a book-building process.
Nordic Mining ASA ("Nordic Mining" or "the Company") has retained Carnegie ASA and Handelsbanken Capital Markets to advise on and effect a contemplated directed issue of new shares directed towards Norwegian and international professional investors after the close of Oslo Axess today. The directed issue will be carried out through a book-building process, and will be for an amount up to NOK 50 million. The minimum subscription will be NOK 400,000.
Nordic Mining ASA ("Nordic Mining" or "the Company") has retained Carnegie ASA and Handelsbanken Capital Markets to advise on and effect a contemplated directed issue of new shares directed towards Norwegian and international professional investors after the close of Oslo Axess today. The directed issue will be carried out through a book-building process, and will be for an amount up to NOK 50 million. The minimum subscription will be NOK 400,000.
On 14 January 2008, Nordic Mining entered into a contract regarding the acquisition of 68% of the shares in Keliber Oy ("Keliber"). Keliber has mining rights and approved plans for mineral extraction and production of lithium carbonate in Finland. The company will be the first manufacturer of lithium carbonate in Europe, and is planning to start production in 2010. On 14 May 2008, Nordic Mining concluded the due diligence process of Keliber with a satisfactory result and the closing of the transaction is planned for June 2008.
Nordic Mining want to continue its strategic development within high-end minerals and metals including titanium, lithium and anorthosite, as well as further exploration on licences for i.a. gold, tungsten, palladium, platinum and thorium. In addition, the Company intends to continue development of electro-magnetic exploratory technology (EM) and strategic evaluation of new business acquisitions.
The net proceeds from the directed issue will be used to part finance the further development of Keliber and the Engebøfjellet project (titanium) in addition to strengthen the Company's working capital.
For further enquiries, please contact CFO Lars K. Grøndahl on telephone +47 - 90 16 09 41.
Nordic Mining in brief
Nordic Mining ASA is an Oslo-listed mining company focusing on high-end industrial minerals and metals, with assets mainly in the Nordic region. The Company has currently production of anorthosite in Norway through its subsidiary Gudvangen Stein AS. Further, Nordic Mining has a large development project for rutile (titanium dioxide) at Engebøfjellet in Norway. Realization of the titanium feedstock project will make Nordic Mining one of the largest producers in the world of rutile feedstock, with reserves for more than 30 years of production. In addition, Nordic Mining will produce high quality garnet for the abrasive industry from the Engebøfjellet, representing a significant increase in projected revenues.
In January 2008, Nordic Mining entered into an agreement to acquire 68% in Keliber Oy; a Finnish company with permits and concessions to start mining and production of lithium carbonate in Finland. With estimated start-up of production in 2010 Keliber will be the first European producer of lithium carbonate. The demand for lithium carbonate is expected to increase significantly in the coming years, especially based on demand from the fast-growing Li-ion battery industry.
Nordic Mining will be developed with integrated activities within exploration, production and sales of high-end industrial minerals and metals. The management of Nordic Mining is focusing on business development with the purpose to expand operations and develop new strategic assets.
Nordic Mining is listed on Oslo Axess with ticker code NOM.
Nordic Mining will publish the report for Q1-2008 Monday 2 June, 2008. Preliminary estimates for key figures (unaudited and not approved by the Board of Directors) are as follows:
| Q1-2008 | Q1-2007 | (Figures in NOK million) | Annual accounts 2007 (audited) |
| | | | |
| 3.5 | - | Sales | 12.1 |
| (1.5) | (8.4) | EBITDA | (27.7) |
| (2.5) | (8.4) | EBIT | (30.3) |
| 21.5 | 0.7 | Cash in bank | 23.7 |
The preliminary estimated variances in EBITDA and EBIT from Q1-2007 to Q1-2008 are mainly explained by non-recurring items.
Oslo, 29 May 2008
Nordic Mining ASA