ASSETS IN NORWAY SOLD, FOCUS AT TAIVALJÄRVI SILVER MINE
(NGM:SOSI)
Sotkamo Silver AB has signed an agreement with Tallmohus AB and Fagelfenix AB of sale of Gexco Norge AS. Thus redeems Sotkamo Silver AB from old Gexco issues, as the leasing of equipment, machinery, site development and reclamation cost in the Norwegian Projects.
The transaction value is SEK 44 890 444. The transaction consists of two parts, SEK 3 million in cash for the shares, including responsibilities for leasing and other agreements. Secondly the loans with value of 41,890,444 SEK will remain.
The loans are changed to a 5-year loan. Security for the loan are the mineral properties in Mo i Rana area. Gexco Norge AS can transfer the loan to a wholly owned subsidiary with the security intact.
Sotkamo Silver AB has the right to convert loan repayments or part of that to shares in upcoming new share issues carried out after 2011. The offset of the loan can be a maximum of 15% of the total principal amount of each issue.
" This deal good for Sotkamo Silver, because of the opportunities to continue development of the Norwegian deposits are very limited together with the project Taivaljärvi Silver Mine. Since we have the opportunity to participate in new issues, we are able to take part of the potential value growth that can take place in Mo I Rana area. With this restructuring of the operations from Norway to Finland, and with our new name Sotkamo Silver, we want to emphasize the importance of Taivaljärvi Silver Mine for the company and its promising future. In the line with this arrangement, Sotkamo Silver AB can focus entirely on the development of Taivaljärvi Silver Mine. All funding and know-how of the Company will be concentrated in Finland. A new era has begun. " Comments: Timo Lindborg, CEO of Sotkamo Silver AB.
Stockholm, 23th September 2010
Timo Lindborg, CEO
Gexco AB (Gexco)'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 minerals deposits containing silver and gold in Finland and mineral deposits containing gold and base metals in northern Norway. The Company’s main target area has moved from Norway to Finland after the completed acquisition of Silver Resources Oy.
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. The shares of Sotkamo Silver AB are quoted NGM Equity in Stockholm under ticker symbol SOSI.
ISIN-code for Sotkamo Silver shares is SE0001057910.
ISIN-code for Sotkamo Silver warrants is SE0003299718.
Read more about Sotkamo Silver on www.sotkamosilver.com or www.gexco.se.
For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507