Publication of prospectus relating to Nordic Mines rights issue

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PRESS RELEASE , May 7, 2014

The Board of Directors of Nordic Mines AB (publ) ("Nordic Mines" or the "Company") has prepared a prospectus for the rights issue published on March 26, 2014. The prospectus has been approved and registered by Finansinspektionen. The prospectus is now available on Nordic Mines (www.nordicmines.com) and Evli Bank 's website (www.evli.com). The prospectus can also be obtained from Evli Bank in Stockholm during office hours +46-8-407 80 00.

The financing solution contain, as previously announced, among other things:

Target to reach a settlement of a debt write-down to 15 million euros (about 135 million SEK) with the Company's current creditorsTarget to reach a settlement with suppliers including a 90 percent write-down of outstanding debtCash contribution totaling at least SEK 150 million

Nordic Mines negotiates with the Companys creditors

As previously announced, the Company is in negotiations with current creditors; UniCredit Bank AG, Bank of America Merrill Lynch Intl Ltd and Finnvera Plc. The Company's objective is to
reach an agreement that significantly reduces the Copany's outstanding debt, extends the repayment period and, in addition, provides interest rates and covenants that facilitate a cash flow positive Laiva operation. The parties have, as per today, not entered into any binding agreements.

Conditions for application for subscription

Applications to subscribe for shares in the Rights Issue, with or without preferential rights, will be conditional upon that an agreement  is reached between the Company, Nordic Mines Oy and the Company's creditors regarding, among other things, write-downs of existing claims under the facility agreement further described in the Prospectus and that the Swedish and Finnish court respectively has determined on composition plans in regards to the ongoing Swedish company reorganization and the Finnish company reorganization relating to companies within the Nordic Mines Group.

Restart of the Laiva operations

Provided that the transactions, rights issue and settlements with creditors and suppliers, are succesfully implemented and a Gold price at current levels, Nordic Mines expect to restart a cash flow positive mine operation.

The company estimates that an investment of about SEK 70 million is required during the first year after the restart to streamline operations in accordance with the Action Plan. The majority relates to investments in the mill in order to increase throughput and availability. Out of the SEK 70 million, the Company expects that capital expenditures of some SEK 30 million is needed upfront at the restart of mine operations.

In connection with the work done during the autumn of 2013, in order to produce a preliminary economic valuation of  the Laiva project and additional assumptions, financial projections were made indicating an overall positive cash flow over the life-of-mine. These initial calculations have since been the subject of continued development and accordingly been adjusted as new information has been analysed and taken into consideration. The Company believes that the mineral resource, updated by SRK, will improve the conditions for profitable mine operations . A restart of mine operations is however dependent on the availability of sufficient external funding. The company estimates that approximately SEK 150 million is needed to restart mine operations and to facilitate the implementation of the Action Plan.


Uppsala , May 7, 2014
Nordic Mines AB ( publ)

For questions , please contact:
Thomas Cederborg , CEO: +46708480521
Jonathan Forsberg , CFO : +46761051310


For more information about Nordic Mines , please visit; www.nordicmines.se

The above information may be information that Nordic Mines AB ( publ) is required to disclose under the Securities Market Act and / or the Trading in Financial Instruments. Information was published at 18:30 May 7, 2014 .

Nordic Mines is a Nordic mining and exploration company whose goal is to become one of Europes leading gold producers and a role model in respecting the environment . The Laiva mine in Finland commenced gold production in late 2011. The discovery is one of the largest in the Nordic countries. Exploration is performed in Finland and Sweden . Nordic Mines was founded in 2005 and has over 100 employees and is headquartered in Uppsala. Its shares are traded on the Nasdaq OMX Small Cap list. See also www.nordicmines.se

Publication of prospectus Nordic Mines


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nordic Mines AB via Globenewswire
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