Nordic Mining’s subsidiary Keliber Oy has secured new equity financing of EUR 4 million for project development of its lithium project in Finland. The new capital will accelerate Keliber’s effort to become the first producer in Europe of high-purity lithium carbonate.
Nordic Mining has entered into agreements related to a private placement in Keliber with cash proceeds of EUR 4.0 million. Participants in the private placement are Finnish institutional and private investors, including Finnish Industry Investment Ltd.
Closing of the equity transaction is expected early October. A pre-condition for the closing is Keliber’s signing of an agreement with the government of Finland to acquire two lithium deposits, Leviäkangas and Syväjärvi, which have previously been offered for sale by the government in an open tender. Preparation of the documentation for the purchase agreement is ongoing in cooperation with the Ministry of Employment and the Economy.
In addition to the planned acquisition of mineral deposits, proceeds from the private placement will mainly be used for proving and documenting an increased resource base for the Keliber project including drilling and other exploration, as well as metallurgical test work and preparations for a feasibility study.
After the equity issue and a related share transfer, Nordic Mining will remain the largest shareholder in Keliber with approximately 38.0%. Finnish Industry Investment Ltd. and Ilmarinen Mutual Pension Insurance Company will own approximately 15.6% and 13.0%, respectively. Other shareholders in Keliber will comprise 12 Finnish private companies and individuals.
CEO of Nordic Mining and chairman of the board of Keliber Ivar S. Fossum comments:
“The new financing and the forthcoming agreement to acquire prosperous new spodumene deposits in the Ostrobothnia lithium province will represent important achievements in the project development process in Keliber. Internationally, we see an increased industrial interest for spodumene-based lithium projects, and we are confident that the new funds and the broadened shareholder base will bring Keliber forward on a solid note and pace.
We expect the combination of new capital and additional mineral properties to revitalize Keliber in many ways. The goal for all shareholders is to bring the company from a project development phase into full-scale industrial production. We are convinced that Nordic Mining together with the other shareholders in Keliber will form a good team to conduct this transformation.”
General Manager of Keliber Olle Sirén comments:
“With the new financing in place we will continue targeted exploration activities as soon as practically possible. This will include the Leviäkangas and Syväjärvi properties. The two properties have previously been investigated by the Geological Survey of Finland (GTK). In total, 9,400 meters have been drilled. Additional drilling is required to achieve JORC compliant classifications. Keliber now holds a first class portfolio of lithium deposits including claims and reservations for claims. In total, these properties and our plans for exploration is expected to pave ground for a viable lithium project. In the foreseeable future, lithium will hold a strong position in battery technology for environmentally friendly energy solutions. Going forward, Keliber intends to be a competitive and profitable player in the lithium industry.”
For further information, please contact:
Ivar S. Fossum, CEO, Nordic Mining, tel: +47 930 96 850
Kimmo Viertola, Director, Finnish Industry Investment Ltd, tel: +358 50 309 2734, email: kimmo.viertola@industryinvestment.com