ADDITIONAL FUNDING SECURED BY DEVELOPMENT LOAN
TEKES - the Finnish Funding Agency for Technology and Innovation, has granted Sotkamo Silver Oy a development loan of 514 000 EUR (about 4 564,000 SEK) for the implementation of Taivaljärvi Silver Mine´s Feasibility Study. The loan will be used to develop an economic and efficient beneficiation method in the pilot test, ore modelling and geophysics. The loan may not exceed 70% of approved expenses.
The loan-interest rate is three percentage-points under a base-rate, but not less than 1.0 %. The loan period is seven years, whereof the first three years are interest only. Maximum 67 % of the loan can be written off if the project does not show the expected result.
TEKES provide Finnish companies with funds for challenging projects which involves development of products, services, production-methods and business concepts.
"I am very pleased that we have been granted a preferential development loan by the Finnish authorities. The loan strengthens the company’s cash position and helps us to fund an important part of our Feasibility Study and the process of planning in Taivaljärvi. " comments Sotkamo Silver's CEO Timo Lindborg
Stockholm, March 21, 2011
SOTKAMO SILVER AB (publ.)
Timo Lindborg, CEO
About Sotkamo Silver AB:
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regard to human society and environment. Sotkamo Silver owns, through its subsidiary mineral deposits, which contains silver and gold in Finland. The Company’s main development project is the Taivaljärvi Silver Mine.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral-resources and ore-reserves according to the internationally accepted JORC or NI 43-101-code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
The shares are traded at the Burgundy market place and NGM Equity in Stockholm.
ISIN-code for Sotkamo Silver shares is SE0001057910. The ticker symbol is SOSI.
ISIN-code for Sotkamo Silver warrants is SE0003299718. The ticker symbol is SOSI. TO2
Subscriptions for shares in Sotkamo Silver AB through Teckningsoption 2 (Warrant: SOSI TO2) can be made from March 1st to March 31st 2011. One share (1) at 0.43 SEK per Teckningsoption 2 (Warrant: SOSI TO2). Last day for trade in Sotkamo warrants (SOSI TO2) is March 28th 2011 on NGM Equity.
Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi.
For further information: Dr. Timo Lindborg, CEO, phone: +358 40 508 35 07