New shares issued on the ASX
Sydvaranger Gruve announces that its parent company, Northern Iron Ltd, today issued new shares on the Australian stock exchange for a value of approximately NOK 378m to fund operational improvements and provide financial flexibility for its mining operation in Sør-Varanger Municipality.
The proceeds from the additional capital will be used as follows:
• NOK143m for plant modifications to further improve product quality and production rates to 2.8 Mtpa.
• NOK210m for supplier and loan repayments.
• NOK23m in additional working capital.
Northern Iron Limited is also running a share placement plan for small shareholders which will be open for one month. Based on past experience this is expected to raise an additional NOK28m.
Commenting on the successful capital raising, the Man. Dir. of Sydvaranger Gruve, John Sanderson, stated “This is a very significant outcome for Sydvaranger Gruve and reinforces the value our existing and new shareholders see in the Sydvaranger project. We now have the funds required to complete our rectification of the plant, meet our obligations to our business partners and suppliers, and reduce the debt due for repayment in the next 9 months which will give us the time we need to improve the quality and production rate of our concentrate. “
As a result of the offer, Northern Iron Limited will have a total of approximately 339.2m shares on issue, and at the offer price of $1.58 per share the Company has a market capitalization of AUD 536m.
• NOK143m for plant modifications to further improve product quality and production rates to 2.8 Mtpa.
• NOK210m for supplier and loan repayments.
• NOK23m in additional working capital.
Northern Iron Limited is also running a share placement plan for small shareholders which will be open for one month. Based on past experience this is expected to raise an additional NOK28m.
Commenting on the successful capital raising, the Man. Dir. of Sydvaranger Gruve, John Sanderson, stated “This is a very significant outcome for Sydvaranger Gruve and reinforces the value our existing and new shareholders see in the Sydvaranger project. We now have the funds required to complete our rectification of the plant, meet our obligations to our business partners and suppliers, and reduce the debt due for repayment in the next 9 months which will give us the time we need to improve the quality and production rate of our concentrate. “
As a result of the offer, Northern Iron Limited will have a total of approximately 339.2m shares on issue, and at the offer price of $1.58 per share the Company has a market capitalization of AUD 536m.
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