Nordic Resources to fast-track Finnish gold projects with $3.5m raise

• Nordic Resources raises $3.5m via placement
• Well known gold-copper geologist and industry veteran Malcolm Norris to be new Chairman
• The raise was significantly upsized due to strong institutional demand
• The Northgold transaction has been approved by the shareholders of the company, and is subject to NNL approval at the upcoming EGM

Special Report: A $3.5 million raise will leave Nordic Resources with $6 million in cash, providing the financial runway to progress three advanced Finnish gold assets being acquired from Northgold.

Firm commitments have been received through a placement to Australian institutional and sophisticated investors via the issuance of 58.33m shares at 6c per share, representing a 1.7% premium to the last closing price and a 5.6% premium to the 15-day VWAP.

High-conviction specialist Powerhouse Ventures (ASX:PVL) and its related funds management entities were cornerstone investors, with funds set to upscale Nordic Resources’ (ASX:NNL) upcoming drill program at the Kopsa and Kiimala gold-copper projects in Finland.

The three gold projects (Kopsa, Kiimala and Hirsikangas) being acquired from Northgold are in the Middle Ostrobothnia Gold Belt (MOGB) of Finland, a well-known gold and base metal region.

Funds from the placement will also help to advance the company’s near-term processing options analysis study on the regional gold strategy in the MOGB.

Director participation and new board appointment

Three directors are set to participate in the placement, including new non-executive chairman Malcolm Norris, a leading figure in copper-gold exploration.

Norris has extensive experience in the region having spent five years operating in Finland and Sweden with Avalon Minerals (now Sunstone Metals), including gold and lithium exploration in southern Finland.

His appointment replaces Todd Ross who is stepping down from the board in order to concentrate on his as managing director of DevEx Resources (ASXL:DEV).

More from Nordic Resources: Three new Finnish acquisitions to bolster portfolio

‘Grateful for ongoing support’

NNL executive director Robert Wrixon said the company is excited with the outcome of this capital raise and the vote of confidence we have received from several important resource-focused funds.

“We are grateful for the ongoing support received from Canaccord Genuity and from our new partners Powerhouse Ventures in particular, throughout this process,” he said.

“We look forward to progressing the gold project portfolio in Finland and unlocking the significant valuation upside for shareholders.”

Targeting potential resource expansion

NNL’s flagship Kopsa deposit contains 23.2Mt at 1.09g/t gold equivalent for 814,800oz gold equivalent with 69% of the resource reporting to the measured and indicated categories.

Funds raised through the placement will allow NNL to expand its drill program at Kopsa aimed at potential resource expansion, targeting near surface mineralisation adjacent to the existing resource and along strike.

The drill program will also target potential copper-gold intrusive targets beneath the exiting resource envelope.

NNL will also continue progressing the auxiliary mining permit application that will secure road access to the site and continuing stakeholder engagement. The validity of the existing mining concession at Kopsa is conditional upon an agreed road access, while maintaining local support for the project is, as always, of critical importance.

NNL says the proposed acquisition was approved at the Northgold EGM on May 22, with the transaction now subject only to NNL shareholder approval at its upcoming EGM.

This article was developed in collaboration with Nordic Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.