SOTKAMO SILVER HAS STARTED THE TEKES-PROJECT AS A PART OF THE CONSTRUCTION WORKS AND THE DEVELOPMENT OF THE PRODUCTION PROCESS
Sotkamo Silver has launched the Tekes-project for which the Finnish Funding Agency for Innovation has granted a development and piloting loan of 6.1 million (SEK 60,4 million). The investment size of the project is € 8.7 million (SEK 86,1 million) including Tekes loan. According to the specific conditions of the development loan, the total funding needed is 20 MEUR.
One of the primary goals of the Project is to utilize ore sorting to increase the material and energy efficiency of the mine, reduce the carbon footprint and reduce water consumption.
With this project Sotkamo Silver will introduce a production process and maintenance management based on a modern remote-control technology as one system in the production process by using Big Data, industrial intranet, and remote process control. This new knowledge will be utilized in all future mines in the Company. The goal of Sotkamo Silver is to be the leading Nordic "Junior Mining" company, utilizing the best available technology (BAT) and industrial internet in its production.
Tekes funding is given to Sotkamo Silver Oy, a wholly owned subsidiary of the Company. The interest-rate for the loan is one percent under a base-rate, but not less than 1.0 %. The loan period is ten years, of which the first five years are grace period. Maximum 4,206,000 euro of the loan can be written off if the project does not show expected result. After the first drawdown of the loan, the drawdowns can be done stepwise according to the incurred costs.
The Funding Agency for Innovation Tekes is the financier and activator of challenging research and development projects and innovation activities of companies, universities, universities and research institutes. Tekes is the most important publicly funded expert organisation for financing research, development and innovation in Finland. Tekes boosts a wide range of innovation activities in research communities, industry and service sectors. As of January 1st, 2018, Finpro – the Finnish trade promotion organization – and Tekes – the Finnish Funding Agency for Innovation – will unite as Business Finland.
"We have now launched the Tekes-project as part of the construction of the mine and the development of its production process. The Tekes funding strengthens the future of the Hopeakaivos project, improving the ability to meet metal price fluctuations", says Timo Lindborg, Technical Director, Sotkamo Silver AB's Group CEO.
Stockholm December 29th, 2017
Sotkamo Silver AB (publ)
Timo Lindborg, CEO
This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at Stockholm 08.45 on December 29th, 2017.
The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.
Timo Lindborg, CEO of Sotkamo Silver AB, tel. +358 40 508 3507
About Sotkamo Silver AB
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with positive social and environmental benefits. Sotkamo Silver owns mineral deposits, which contain silver and gold in Finland as well as zinc and gold in Norway. The Company’s main development project is the Silver Mine project in the municipality of Sotkamo.
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 ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
Read more about Sotkamo Silver on d or www.silver.fi
The Company's press releases and financial reports are distributed via Cision Sverige and are available on www.silver.fi