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Nordic Mines successfully completes private placement of approximately SEK 89 million
Press release 8 March, 2012
Nordic Mines AB ("Nordic Mines") today announces that it has completed a private placement of 1,750,000 new shares, providing the company with approximately SEK 89 million before transaction costs.
The private placement has allowed Nordic Mines to place 1,750,000 new shares at a price of SEK 51 per share with international institutional investors and qualified investors in Sweden through an accelerated bookbuilding procedure.
For the purpose of the private placement, the Board of Directors of Nordic Mines has resolved, by virtue of the authorization given by the 2011 Annual General Meeting, on a directed issue of 1,750,000 new shares. The purpose of the resolution to issue new shares, deviating from the shareholders' pre-emptive rights, is primarily to broaden the long-term institutional ownership in Nordic Mines, and to take advantage of an opportunity to raise capital for the below-mentioned purposes on attractive terms, thereby promoting Nordic Mines's ability to create further value for all shareholders.
The proceeds from the private placement are intended to be used to strengthen Nordic Mines's working capital and finance the continued exploration work.
The new issue results in an equity dilution of approximately 5 percent after completed issue. Furthermore, the subscription price corresponds to a discount of approximately 0.5 percent compared to the closing share price on 7 March 2012, the last trading day before the resolution to issue new shares. Through the issue, the number of shares in Nordic Mines increases by 1,750,000 from 34,921,647 to 36,671,647 and the share capital increases from SEK 34,921,647 to SEK 36,671,647.
Michael Nilsson, CEO of Nordic Mines, comments:
"We are very pleased to have raised this additional funding from new international and Swedish institutional investors. The strengthened financial position will enable us to continue the ramp-up of the production in the Laiva mine as well as continue the exploration and thereby create additional shareholder value."
Carnegie Investment Bank acted as bookrunner to Nordic Mines.
Information disclosed in this press release is provided herein pursuant to the Swedish Securities Markets Act. The information was submitted for publication at 8.30 am (CET) on 8 March 2012.
Michael Nilsson, CEO Nordic Mines, +46 (0)18-84 34 501, mille@nordicmines.se
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