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Thursday, 10 August 2017

The Board's comment and assessment of alternatives from Firesteel and Lau Su as well as a summary description in Swedish of the options. Full presentations in English attached as pdf

Nordic Mines AB    

Published: 17:54 CEST 10-08-2017 /GlobeNewswire /Source: Nordic Mines AB / : NOMI /ISIN: SE0007491105

The Board's comment and assessment of alternatives from Firesteel and Lau Su as well as a summary description in Swedish of the options. Full presentations in English attached as pdf

Since the previous AGM, the Board has devoted time to discuss with Firesteel and with representatives of Lau Su about NOMI's strategic direction for the future, and finally to determine the terms that accompany the two current road choices. The board is still trying to find an alternative where the two proposals could be combined in an NOMI-beneficial manner.

At present, the Board of Directors favors Firesteel's options, although there is still no confirmation of proof of funds are allocated to the account to implement the plans. The reason for this statement is that Firesteel's proposal implies that NOMI is promptly provided with the necessary capital to ensure continued operations and to start operations at Laiva.

With regard to Lau Sus's proposal, the Board does not want to reject it at the present time, as the Board lacks sufficient support to assess the deal in all respects. For this reason, the Board recommends that feasibility studies, technical description and benefits versus Firesteel proposal be implemented before a further general meeting can decide if there is scope for further progress. If shareholders find that Lau Sus's proposals should be investigated in the manner proposed now, it is imperative that Lau Su also undertakes to make available the necessary funding until such time as decisions can be taken and for the necessary time thereafter. According to what the Board has received, the aforementioned investigations will take at least six months before they can be submitted to a general meeting for a decision. Lau Su should also undertake to guarantee an amount of three million US dollars, as proposed by Lau Su, within the framework of the rights issue currently prepared according to the resolutions of the previous AGM.

As noted above, the Board has also taken steps to initiate a new share issue in cooperation with the company's partners and advisors. In addition, probation are ongoing to broaden the board.

In summary, the various proposals include:

I. Firesteel's business plan

A) Drive the Laiva mine as a Joint Venture together with Nordic Mines AB (publ)
B) Obtain the necessary resources and skills to restart the mine. From start to full production is estimated 6 months
C) The need for funds is estimated to be approximately CAD 20,000,000
D) Strengthen shareholder values by running profitable mining operations
E) Implement better cost control
F) Implement better grade control at the blasting control to increase the gold content of the ore
G) Optimize mining methods and process recovery. It includes reworked geological model, better blasting methods, crushing, improvement in the mill and qualified mining management. Objective of doubling the gold content to 1.8 gr / ton.
H) Demonstrate hidden values in a previously poorly understood asset
I) Build resources through exploration
J) Evolve to an international mid-tier producer by acquiring other assets in other assets in other jurisdictions
K) Firesteel has so far invested CAD 3,000,000 in direct financial support and extensive technical research which includes geology, preparation of operational plan and contacts with the company's creditors.
L) Firesteel will own 51% of the asset Nordic Mines Marknad AB initially and later 60%. Firesteel will offer shareholders the opportunity to buy their remaining 40% share of the shares.

II. Lau Su's business plan

The business plan extends from September 2017 to August / September to production start-up, estimated to fall in 2018. It comprises the following steps:
A) New issue of $ 8 million, September 2017. Of which guaranteed by Lau Su $ 3 million
B) Dilution 25%
C) Conversion loan to equity, December 2017
D) Ambition for write-down of liabilities to suppliers by 80% in respect of items beyond the composition plan.
E) Prospectus for splitting mining / mill, February 2018. Included license questions.
F) Voluntary delisting from Nasdaq, February 2018. Takes about 6 months. Unregistering may also be enforced, whereby naturally alternative registration is to be sought.
G) Private investment in new company 2, the mill, April 2018. Merger with company $ 100 million turnover
H) Guaranteed IPO (New Registration) of new companies 1 and 2 on the Bombay Stock Exchange, July 2018
I) IPO completed for the two companies with size of $ 6 million each in September 2018
J) Objective of value per share company 1 (mining) = 1.55SEK / share: company 2 (mill) 1.55SEK / share
K) Immediate following after September 2018, objective is continuing with the acquisition of another Nordic gold mining company and continuing exploration in Laiva

For additional information, please contact:
Torbjörn Bygdén
Företagsekreterare och Investor Relations

00 46 (0) 70 301 45 46
Lindhagensgatan 94, box 34212
10026 Stockholm

Nordic Mines AB (publ.) is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 10 August 2017. 

Nordic Mines is a Nordic mining and exploration company. The Laiva mine in Finland produced gold between 2011 and 2014. The deposit is among the largest in the Nordic region. Nordic Mines is a member of SveMin and applies its reporting regulations for public mining and exploration companies. The Nordic Mines share has been admitted for trading on Nasdaq Stockholm's Small Cap list. For further information, see www.nordicmines.com

Press release (PDF)

This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Nordic Mines AB (publ), Mäster Samuelsgatan 60, 8tr, Stockholm SE-111 21, Sverige
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