Nordic Mining ASA: Secures first part of Engebø Project Financing Equity of NOK 132.5 million from a group of local investors

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Nordic Mining ASA (“Nordic Mining” or the “Company”) is pleased to announce that it has secured NOK 132.5 million, the first part of the Project Financing Equity, for the Engebø Rutile and Garnet Project (“Engebø Project”) from a group of local Sunnfjord investors led by two of the Engineering, Procurement and Construction (“EPC”) partners for the Engebø Project, and their shareholders, together with other local investors. The investment is conditional upon the approval by an Extraordinary General Meeting (“EGM”) to be held on our about 4 February 2022.

CEO Ivar Fossum states:

“This transaction is an important first step in the Project Financing and enables us to pay compensation to landowners and start construction of the Engebø Project’s ground works. We appreciate the interest and commitment from the local investor group and consider it as a substantial confirmation of the local support to the project and its positive effect on the local community.”

The equity contribution of NOK 132.5 million is structured as a loan with conversion rights to shares in Nordic Mining ASA, with certain obligations on specific terms and milestones as the project development progresses (the “Convertible Loan”). The Convertible Loan will upon conversion contribute as part of the equity for the Project Financing package, expected to be around USD 250 million comprising debt, equity and potential hybrid capital or royalty. The Company is currently progressing its assessment of several financing structures and targets a financial close in H1 2022. Further updates will be provided in due course.

The key term and conditions for the Convertible Loan is enclosed this notice.

The Company will prepare a call for general meeting for approval of the Convertible Loan.

Clarkson Platou Securities AS and SpareBank 1 Markets AS act as Financial Advisers to the Company in relation to the Project Financing.

For further information, please contact CFO Christian Gjerde, telephone +47 98060909.

Oslo, 11 January, 2022
Nordic Mining ASA

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Nordic Mining ASA (www.nordicmining.com)

Nordic Mining ASA (“Nordic Mining” or the “Company”) is a resource company with focus on high-end industrial minerals and metals. The Company’s project portfolio is of high international standard and holds significant economic potential. The Company’s assets are in the Nordic region.

Nordic Mining is undertaking a large-scale project development at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Nordic Mining also holds 12.7% of the shares in Keliber Oy, which is developing a lithium project in Finland to become the first European producer of battery grade lithium hydroxide.

In addition, Nordic Mining holds interests in other initiatives at various stages of development. This includes patented rights for a new technology for production of alumina and exploration of seabed minerals.

Nordic Mining is listed on Euronext Expand Oslo with ticker symbol “NOM”.