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Sweden : NORDIC MINES reaches agreement in principle with lenders regarding buy back of outstanding debt.

Nordic Mines AB has entered an agreement in principle with its lenders for the company to buy all of the lenders' claims on Group companies in line with the existing project funding agreement.

Nordic Mines plans to fund the acquisition through one or more new stock issues.

As per the agreement in principle sees : Nordic Mines buys all of the lenders' claims on Group companies in line with the current project funding agreement at a consideration of around EUR 5 million, which corresponds to a new write-down of around EUR 10 million. The original debt was EUR 45 million; Also included in the agreement are outstanding warrants held by the lenders corresponding to an ownership of 12%; Nordic Mines regains through this acquisition 100% control over the assets that are pledged in line with the project funding agreement.

The purchase will be funded through new stock issues that will inject around SEK 110 million into Nordic Mines at full subscription, but as a minimum around SEK 80 million.

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Publication:Mena Report
Date:Sep 22, 2015
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