Nordic Mines announcing signing of MOU for JV with Firesteel.
NORDIC BUSINESS REPORT-June 9, 2017-Nordic Mines announcing signing of MOU for JV with Firesteel
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Nordic Mines AB (STO:NOMI), a Nordic mining and exploration company, announced on Thursday the signing of a Memorandum of Understanding (MOU) with Firesteel Resources Inc (FTR) in order to establish a Joint Venture in favour of FTR.
This JV vehicle will be Nordic Mines Marknad AB (NMM), which currently is a wholly owned subsidiary of the company. NMM will hold all of the company's prospecting licenses as well as all of the exploitation properties.
Nordic Mines will contribute the properties, the mill and the licenses for 49% of the JV, while FTR will contribute CAD18,000,000, the operating team, the operating plan and know-how for 51% of the Joint Venture. NMM contains all the operative business of the Nordic Mines group.
Reportedly, this JV will be run by an operating committee comprised of five directors, three of whom will be appointed by FTR and two of whom will be appointed by Nordic Mines. It is the intention of the parties that any profits from NMM pursuant to the production of gold will be distributed to the respective parties in the form of dividends.
Also, the parties intend to sign legally binding documentation by 25 June 2017, which will include FTR committing the sum of CAD18,000,000 by 25 August 2017. To initiate the legally binding documentation, the JV has secured approval from shareholders representing close to 40 % of the shares and votes in Nordic Mines, supporting the necessary agreements and a standstill and exclusivity arrangement to FTR for a period up-until 25 August 2017 in which to complete the transaction.
Standstill means that loans in NMM will not be collected although the expiration date has passed. In exchange for this option FTR will pay the sum of EUR887,100 to the company with immediate effect no later than during the week commencing 12 June 2017 via confirmed bank transmittance copy to the company. This agreement will be subject to shareholders approval at an upcoming Extra General Meeting to be summoned.
As a result of this JV, the resolution by the board of directors on rights issue on the condition of the subsequent approval from the AGM, as communicated on 1 June 2017 in the notice to the upcoming AGM, will no longer be supported by Lau Su Holding AB.
Lau Su has signed the MOU and has agreed to support a 51:49 Joint Venture model involving a binding commitment to investment of CAD18,000,000.
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|Publication:||Nordic Business Report|
|Date:||Jun 9, 2017|
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