The board of directors of Botnia Exploration Holding AB has decided to instantly prepare an application for a test mining permit for the gold mineralisation Fäbodtjärn in Vindelgransele, Västerbotten. As a consequence of the decision by the board of directors, the discussions with an international partner on co-operation regarding a joint exploration in the Vindelgransele area have ended.
Application for test mining permit for Fäbodtjärn
The board of directors of Botnia Exploration Holding AB has decided to instantly prepare an application for a test mining permit for the gold mineralisation Fäbodtjärn in Vindelgransele, Västerbotten. As a consequence of the decision by the board of directors, the discussions with an international partner on co-operation regarding a joint exploration in the Vindelgransele area have ended.
Test mining is the last step in exploration and is performed under the exploration permit Stenberget no. 3. Consultation for test mining and the related environmental impact assessment is planned for with the County Administrative Board in Umeå and with Lycksele Municipality. Consultation with landowners and other stakeholders will take place promptly after the consultation with the County Administrative Board and Lycksele Municipality.
In parallel with the preparation of the application for a test mining permit, an application for an exploitation concession will be developed and is scheduled to be submitted in the latter part of 2014.
The discussions within the scope of the letter of intent with an international partner, which we informed on in the press release dated 2014-02-19, are ended. However, the parties have agreed to have a continued close co-operation and dialogue. The discussions have been fruitful, but the opinion of the board of directors and the management is that this decision is the best in order to ensure the shareholder value, both in short and long term.
Botnia Exploration has concluded an agreement on a financial solution consisting of a bridge loan in combination with a directed issue of shares of in total 5,000,000 shares to a few of the company’s main shareholders. The financing will cover the capital needs for the test mining, continued exploration and the operating activities. The total financing amounts to approx. 11 MSEK and as a part of the financing of this capital need, the board of directors has decided that 8 MSEK shall be financed by the issue of 32 Units and 3 MSEK shall be financed by loan or convertible. One Unit in this offer consists of 156,250 shares at 0.80 SEK in Botnia and a bond loan of 120,000 SEK running until 2015-09-30 with a coupon interest of 15% payable at maturity. The interest rate and the discount are set on market terms; the directed issue of shares occurs at the market rate 0.80 SEK, the annual interest for the bridge loan is 12%. The objective is that the financing shall take the company up to the point where the company gets its first revenues from the test mining.
32 Units are covered, where the largest commitments are Partnerinvest with 8 units; Akilakonsulting AB with 8 units and Anders Ljung with 6 units. Anders Ljung is 48 years old and son of the board member and CEO Bengt Ljung and brother of Thomas Ljung who is CFO of the company. Other relation to the company is non-existent. He has been shareholder since the company was noted on AktieTorget and intends to continue being a long-term and independent owner.
“As we have presented in articles, CEO statements and press releases, it is exciting to be at this turning point. Test mining of Fäbodtjärn is a correct decision. We have since earlier positive experiences from test mining and test concentration from our deposit in Vargbäcken. We are convinced that the test mining from Fäbodtjärn may well produce a larger amount of gold, with a tonnage corresponding to the one that was concentrated from Vargbäcken. The deposit is without doubt, with regards to gold contents and regularity, of the dignity that it is well suited for small-scale mining; a way of mining that can be conducted in an environmentally and economically favourable manner”, says Bengt Ljung CEO for Botnia Exploration Holding AB.
“After having studied the geological and technological conditions for Botnia’s gold deposit Fäbodtjärn, I am convinced that the deposit quickly can generate a positive cash flow with very small investments. The concentration tests that LTU are conducting for Botnia will further strengthen the project”, says Mining Engineer Thomas Lindholm, GeoVista AB, Luleå. Lindholm is qualified as competent person in the manner required by JORC 2012, based on his education and experience from exploration, mining operations and estimations of mineral resources and mineral reserves for iron, base and precious metals.
For further information, please contact:
Bengt Ljung, CEO – Botnia Exploration
Phone: +46 705 431605
Email: info@botniaexploration.com
Botnia Exploration Holding AB (publ) is an exploration company focusing on gold and base metals in Sweden. The company is listed on AktieTorget (BOTX). For further information, please visit www.botniaexploration.com.
Test mining is the last step in exploration and is performed under the exploration permit Stenberget no. 3. Consultation for test mining and the related environmental impact assessment is planned for with the County Administrative Board in Umeå and with Lycksele Municipality. Consultation with landowners and other stakeholders will take place promptly after the consultation with the County Administrative Board and Lycksele Municipality.
In parallel with the preparation of the application for a test mining permit, an application for an exploitation concession will be developed and is scheduled to be submitted in the latter part of 2014.
The discussions within the scope of the letter of intent with an international partner, which we informed on in the press release dated 2014-02-19, are ended. However, the parties have agreed to have a continued close co-operation and dialogue. The discussions have been fruitful, but the opinion of the board of directors and the management is that this decision is the best in order to ensure the shareholder value, both in short and long term.
Botnia Exploration has concluded an agreement on a financial solution consisting of a bridge loan in combination with a directed issue of shares of in total 5,000,000 shares to a few of the company’s main shareholders. The financing will cover the capital needs for the test mining, continued exploration and the operating activities. The total financing amounts to approx. 11 MSEK and as a part of the financing of this capital need, the board of directors has decided that 8 MSEK shall be financed by the issue of 32 Units and 3 MSEK shall be financed by loan or convertible. One Unit in this offer consists of 156,250 shares at 0.80 SEK in Botnia and a bond loan of 120,000 SEK running until 2015-09-30 with a coupon interest of 15% payable at maturity. The interest rate and the discount are set on market terms; the directed issue of shares occurs at the market rate 0.80 SEK, the annual interest for the bridge loan is 12%. The objective is that the financing shall take the company up to the point where the company gets its first revenues from the test mining.
32 Units are covered, where the largest commitments are Partnerinvest with 8 units; Akilakonsulting AB with 8 units and Anders Ljung with 6 units. Anders Ljung is 48 years old and son of the board member and CEO Bengt Ljung and brother of Thomas Ljung who is CFO of the company. Other relation to the company is non-existent. He has been shareholder since the company was noted on AktieTorget and intends to continue being a long-term and independent owner.
“As we have presented in articles, CEO statements and press releases, it is exciting to be at this turning point. Test mining of Fäbodtjärn is a correct decision. We have since earlier positive experiences from test mining and test concentration from our deposit in Vargbäcken. We are convinced that the test mining from Fäbodtjärn may well produce a larger amount of gold, with a tonnage corresponding to the one that was concentrated from Vargbäcken. The deposit is without doubt, with regards to gold contents and regularity, of the dignity that it is well suited for small-scale mining; a way of mining that can be conducted in an environmentally and economically favourable manner”, says Bengt Ljung CEO for Botnia Exploration Holding AB.
“After having studied the geological and technological conditions for Botnia’s gold deposit Fäbodtjärn, I am convinced that the deposit quickly can generate a positive cash flow with very small investments. The concentration tests that LTU are conducting for Botnia will further strengthen the project”, says Mining Engineer Thomas Lindholm, GeoVista AB, Luleå. Lindholm is qualified as competent person in the manner required by JORC 2012, based on his education and experience from exploration, mining operations and estimations of mineral resources and mineral reserves for iron, base and precious metals.
For further information, please contact:
Bengt Ljung, CEO – Botnia Exploration
Phone: +46 705 431605
Email: info@botniaexploration.com
Botnia Exploration Holding AB (publ) is an exploration company focusing on gold and base metals in Sweden. The company is listed on AktieTorget (BOTX). For further information, please visit www.botniaexploration.com.
