Uppsala, May 4th, 2010
Quarterly Report January-March – press release
Construction of the gold mine in Laiva in parallel to negotiations about remaining project financing
During the first quarter 2010, Nordic Mines started to construct the gold mine in Laiva in Finland. Meanwhile, negotiations about the remaining project financing continued after the company had raised MSEK 240 through a combination of a directed and a preferential rights share issue.
The feasibility study for the Laiva project was finalised during the first quarter. It shows that the gold mine will be profitable even at gold prices far below today’s levels. At the moment, the gold price is quoted at 1,185 USD per ounce, corresponding to 903 EUR per ounce, which is a new all-time-high.
In February, Nordic Mines started to build roads and other types of infrastructure in the Laiva area. Activities are supervised by the Finnish project leading company Ahma Engineers.
The ore reserve was reported in a press release published March 10, 2010. The proven and probable ore reserve amounts to 11,7 million tons with an average content of 1,9 grams gold per ton. Apart from this, there are measured and indicated mineral resources of 4,9 million tons with an average content of 1,8 grams gold per ton. This means that Laiva is one of the biggest gold deposits in the Nordic region.
At the beginning of the year, Nordic Mines carried out a combination of a directed and preferential rights share issue. The company raised a total of MSEK 240, before expenses, through the transaction. A number of major institutions became shareholders of the company through the directed share issue.
Investments amounted to TSEK 7,977 (TSEK 19,046). Earnings after financial entries were TSEK -2,736 (TSEK -3,766). The company’s short-term investments and liquid assets amounted to MSEK 202,3 (MSEK 66,7).
- While preparing to start mining in Laiva, we are also focusing on extending the mineral resources in the Laiva area as well as identifying new, interesting deposits. During the spring 2010, we are extending the drilling in the Laiva area, as well as our exploration activities in Sweden. Exploration is essential in order for us to reach our vision to become one of the leading gold producers in Europe, says Michael Nilsson, CEO Nordic Mines.
For further information, please contact:
Michael Nilsson, Chief Executive Officer, Phone +46188434501, E-mail: mille@nordicmines.se
Hannu Vehmanen, Chief Financial Officer, Tel: +46 18 84 34 504 E-mail: hannu@nordicmines.se
Nordic Mines is a Nordic company, focusing its operation on exploring for gold. The company has six project areas, three in Finland and three in Sweden. At the moment, Nordic Mines is concentrating on developing the gold deposit in Laiva, near Brahestad in central Finland. The Laiva deposit is one of the biggest gold deposits discovered so far in the Nordic region and production start is planned for 2010. Nordic Mines vision is to become one of the leading gold producers in Europe as well as role model in respecting the environment. The share is traded on the NASDAQ OMX Nordic Exchange.