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Nordic Mining’s interim report per 31 December 2015

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Enclosed please find Nordic Mining’s interim report for the fourth quarter 2015.

Important events in the fourth quarter, the year 2015, and subsequent events (*):

Nordic Rutile (100%) - Engebø project

  • Industrial area plan and discharge permit approved for the Engebø rutile project
    On 17 April 2015, the Ministry of Local Government and Modernisation approved the industrial area plan (zoning plan) for the Engebø rutile project. On the same date, a discharge permit for the project was granted by the Ministry of Climate and Environment.

  • Managing Director appointed for Nordic Rutile
    Thomas B. Addison, a mining engineer from the Norwegian University of Science and Technology (“NTNU”), has been appointed Managing Director for Nordic Rutile. Addison took up the position on 1 February 2016. He will manage and coordinate the development of the Engebø rutile project, including activities related to the upcoming pre-feasibility study (“PFS”).

  • Drilling program initiated at Engebø (*)
    A core drilling program was started at Engebø in early February 2016. The program is scheduled for approximately 8 weeks. The plan is to drill about 40 holes with a total length of approximately 6,500 meters, mainly in the open pit part of the deposit, with subsequent analyses and re-estimation/reclassification of the deposit in accordance with the JORC Code.


Nordic Quartz (100%) - Kvinnherad project

  • Independent quartz resource estimates completed (*)
    In February 2016, an independent assessment of the Kvinnherad hydrothermal quartz was completed based on i.a. information from the drilling program which was executed in the fall 2015. The Qualified Persons have estimated significant quartz-containing mineral resources in the inferred and indicated categories. The quartz content varies in the deposit with a substantial part in the massive zone category (>95% quartz content).


Nordic Ocean Resources (80%) – Seabed minerals

  • The “MarMine” project has started
    Nordic Ocean Resources, together with NTNU and other industrial parties and knowledge institutions, have started “MarMine”, a comprehensive research project on marine mineral resources. The project has been granted NOK 25 million in financial support from the Norwegian Research Council. An exploration cruise on the Mid-Atlantic Ridge will be executed in 2016 with mineral sampling, analytical assessments and process test work. 


Keliber (25%) - Lithium project

  • Battery grade lithium carbonate produced in Keliber’s test program (*)
    Keliber has carried out test work to develop and optimise its lithium carbonate production process. Analytical results indicate that high-purity lithium carbonate, including qualities exceeding 99.9% purity, can be produced using the developed process technology.

  • Positive price development for lithium (*)
    Over the last months, lithium carbonate prices have increased, in particular in the Chinese spot market. Prices for battery grade lithium carbonate (>99.5% Li2CO3) have been reported above USD 20,000 per tonne, compared with a previous price level of USD 6,800 – 7,500 per tonne. The recent development indicates a tightening supply for lithium carbonate.

  • Agreement with international lithium chemicals company (*)
    Keliber has signed a Letter of Intent with an international chemicals producer with focus on lithium chemicals. The parties intend to establish a technical and commercial cooperation to evaluate product and marketing strategies for lithium products based on Keliber’s planned production.

  • Status for the PFS (*)
    Keliber’s pre-feasibility study (“PFS”) has been delayed, mainly due to delays regarding processing test work. Capex and cost estimations are ongoing related to the PFS which will be finalised in March 2016.
     

Corporate matters

  • Completed Rights Issue
    A Rights Issue of 77 million new shares was completed in October 2015 at a subscription price of NOK 0.45 per share. The issue was 56% oversubscribed. Gross proceeds from the issue were NOK 34.65 million.

  • Extraordinary General Meeting (*)
    An Extraordinary General Meeting was held 4 February 2016. The general meeting approved an authorisation to the Board of Directors to issue up to 170 million new shares in connection with possible equity issues to raise capital to the Company, or for consideration, in whole or in part, in connection with investment in other businesses. The authorisation is valid till 30 June 2016.

For further information please contact CFO Lars K. Grøndahl, telephone +47 901 60 941.


Oslo, 19 February 2016
Nordic Mining ASA



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 in Norway and internationally. The Company’s project portfolio is of high international standard and holds a significant economic potential. The Company’s assets are in the Nordic region.

Through the subsidiary Nordic Rutile AS, Nordic Mining is undertaking a large-scale project development at Engebø in Sogn and Fjordane where the Company has rights to a substantial eclogite deposit with rutile and garnet. Permits for the project were granted by the Norwegian government in April 2015. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Hordaland and develops the project through its subsidiary Nordic Quartz AS. Nordic Mining’s associated company Keliber Oy in Finland plans to start mining of lithium bearing spodumene and production of lithium carbonate. Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and Finnmark where the Company has discovered a prospective area of sulphide mineralisation. Through the subsidiary Nordic Ocean Resources AS, Nordic Mining is exploring opportunities related to seabed mineral resources.

Nordic Mining is listed on Oslo Axess.

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