logo-loader
viewOtso Gold Corp.

Nordic Gold provides production update at Laiva mine

The company said it is examining strategic alternatives to remedy working capital and operating challenges at the mine located in Finland

gold pour
Nordic's first gold pour at the Laiva mine in Finland

Nordic Gold Inc (CVE:NOR) announced Wednesday that it is experiencing liquidity and operational issues, due to a shortfall in tonnes and grade at its Laiva mine in Finland. 

The company said it is looking at alternatives to remedy the situation. 

"This lack of working capital and the operating challenges have resulted in a slower than expected ramp up to commercial production as we have not been able to adequately finance the ramp-up process and building up a gold mine takes time and money," said President and CEO Michael Hepworth in a statement. "The company is now examining all strategic alternatives to remedy this situation."

READ: Nordic Gold expects to produce 67,000 ounces this year, as the Laiva mine in Finland comes into its own

The company said in a statement it began operations with a working capital deficit and that has continued, despite significant effort being made to find additional lenders and investors. According to the company, these have been unsuccessful due to market conditions and the structure of the company's financing.

"Until very recently, the company had hoped that its current financier and lender would provide additional financing, but this has not materialized due in part to operational issues and production shortfalls," said the company in a release.

The company said it is working with its contractor to remedy a number of operational issues. It has also started a cutback on the north pit to provide access to additional high-grade ore bodies.

"The cutbacks will widen the pit and provide access to additional mineable ore," said the company. 

To date, the Laiva Mine has produced a total of 6,096 ounces of gold and has received US$7.76 million in revenue from gold sales.

According to the company, it expects to produce an additional 1217 ounces of gold by the end of February.

Shares of Nordic Gold were halted Wednesday.

Contact Katie Lewis at [email protected]

Follow her on Twitter: @kelewis

Quick facts: Otso Gold Corp.

Price: 0.06 CAD

TSX-V:OTSO
Market: TSX-V
Market Cap: $13.64 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Otso Gold Corp. named herein, including the promotion by the Company of Otso Gold Corp. in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Nordic Gold kicks off drilling programme at its Otso mine project in Finland

Nordic Gold Inc (CVE:NOR) chief executive and president Brian Wesson speaks to Proactive London's Andrew Scott soon after announcing that drilling has started at its gold mine project in Finland.  The work includes drilling of between 10,000 and 15,000 metres across 146 holes and is a...

on 12/05/2019

2 min read