The money will be used to restart mine and mill and to replace its current lender, said the company in a statement. The company is currently in discussions with several parties interested in providing the capital.
The funds will provide working capital for ongoing operations and provide funds for drilling to expand the resource.
Nordic owns close to 4,295 hectares of highly prospective but underexplored exploration property near the mine. The area permitted for mining covers a further 1,694 hectares. Much of the area is also underexplored.
To date, the Laiva Mine has produced a total of 6,920 ounces of gold and has received US$8.8 million in revenue from gold sales.
The company also announced the resignation of Ernest Cleave as a director and thanked him for his contribution to the company.
Meanwhile, the company also said it had terminated its contract with its mining contractor due to “continued underperformance.”
To conserve cash, the Laiva Mine will be placed in care and maintenance while an alternative contractor is engaged. “Care and maintenance is expected to last for around three to four months,” said the company.
The process of engaging another contractor has begun. "A scope of work has been issued and several competitively priced proposals have been received," said the company.
Nordic Gold engages in the acquisition and exploration of gold, precious, and base metal primarily in Canada and internationally. It holds 100% interest in the Laiva Mine in Raahe, Finland which is fully built, fully permitted and financed to production through a gold forward sale agreement.
It also has an interest in the Sheslay, one of the most promising grassroots mineral exploration areas in British Columbia, Canada.
Contact Uttara Choudhury at [email protected]