Endomines carries out a directed share issue in an amount of approximately EUR 1.3 million to speed up developments at the Friday minePress release (PDF)
Endomines AB, Stock Exchange Release 8 April 2020 at 17:30 CEST
Endomines’ Board of Directors has today, in accordance with the authorisation granted by the extraordinary general meeting on 10 December 2019, resolved on a directed issue of 2,465,000 shares to certain institutional and private investors in Finland resulting in approximately EUR 1.3 million in proceeds for the company. The consideration in the share issue will be used to finance an accelerated ramp-up at the Friday mine.
In light of the increased price of and demand for gold recently, Endomines has concluded that accelerating the ramp-up at the Friday mine would be of great value to the company. The Board of Directors considers the directed share issue to be the most beneficial way for the company to quickly access the capital required for this purpose. The share issue is carried out at a subscription price of EUR 0.54 per share, which represents a discount of 10% compared to the volume weighted average price of the Endomines share on Nasdaq Helsinki during 2-6 April, which according to the Board of Directors assessment is in line with the market value. The number of shares in Endomines will, after registration of the share issue, increase from 113,447,640 to 115,912,640 and the share capital will increase from 340,748,679 SEK to 348,152,495 SEK. The share issue results in a dilution of approximately 2.1 per cent of the total amount of shares and votes in Endomines.
Ingmar Haga, Chairman of the Boards of Endomines, comments: "During the ongoing turmoil in global economy the demand for gold has grown significantly and its price has increased substantially. Therefore, we have taken the decision to accelerate the ramp-up of our Friday operation. This will in the short term require more working capital than we had planned. It is very positive to see, that in this challenging financial market conditions, there is confidence towards Endomines and we managed to complete this capital raise in a very short period of time."
UB Securities Ltd acts as financial advisor to Endomines in connection with the directed share issue.
Ingmar Haga, Chairman, +358 40 700 35 18, email@example.com
Marcus Ahlström, Deputy CEO and CFO, +358 50 544 68 14, firstname.lastname@example.org
This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact persons set out above at 17:30 CEST on 8 April 2020.
Endomines is a mining and exploration company with its primary focus on Au. The Company operates a Gold mine in Pampalo, has exploration activities along the Karelian Au Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).