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Nordic Gold engages Jett Capital Advisors to secure $35M in debt financing

The company is currently in discussions with several parties interested in providing the capital

Nordic Gold Inc's Laiva gold mine in Raahe, Finland
Nordic Gold engages in the acquisition and exploration of gold and precious metals and runs the Laiva gold mine in Raahe, Finland

Nordic Gold Inc (CVE:NOR) announced Monday that it had engaged Jett Capital Advisors LLC of New York to help the company secure $35 million in attractively priced debt financing.

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.

READ: Nordic Gold provides production update at Laiva mine

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]

Follow her on Twitter@UttaraProactive 

Quick facts: Otso Gold Corp.

Price: 0.095 CAD

Market: TSX-V
Market Cap: $21.12 m

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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