Nordic Gold Provides Status Update
TSX VENTURE: NOR
Vancouver, BC / TheNewswire / February 13, 2019 - NORDIC GOLD INC. (TSX-V: NOR) ("Nordic" or the "Company") today announced that due to a shortfall in tonnes and grade to the mill, it is experiencing liquidity and operational issues.
Although the Company was funded to production by a gold forward sale and a loan, Nordic began operations with a working capital deficit and has continued operating with a working capital deficit to date. Over the last 14 months, significant efforts have gone into finding additional lenders and investors to remedy this situation but these have been unsuccessful due to market conditions and the structure of the Company's financing.
Until very recently, the Company had hoped that its current financier and lender would provide additional financing, but this has not materialized due in part to operational issues and production shortfalls, including those noted below. As a result, the Company is experiencing liquidity and cash flow uncertainties.
In addition to the liquidity issues, the Company is dealing with operational issues caused by the under performance of its mining contractor. This has resulted in lower than expected grade and tonnage to the mill, causing the Company to miss various milestones under the terms of its current financing. The Company is working with the contractor to remedy these issues.
The Company has also started a cutback on the north pit to provide access to additional high-grade ore bodies. The cutbacks will widen the pit and provide access to additional mineable ore.
The Company poured another 22kg of 85% dore on February 05, 2019. The estimated value of this pour is EUR707, 000 or US$805,442. To date, the Laiva Mine has produced a total of 189.6 kg of dore (6,096 ounces of gold) since the first pour on 30th November 2018 and had received US$7,764,027 in revenue from gold sales. The Company will process an additional 40,000 tonnes of ore through the mill at a grade of 1.1 g/t Au and expects to produce an additional 1217 ounces of gold by the end of February.
Michael Hepworth, President and CEO stated: "This lack of working capital and the operating challenges have resulted in a slower than expected ramp up to commercial production as we have not been able to adequately finance the ramp-up process and building up a gold mine takes time and money. The Company is now examining all strategic alternatives to remedy this situation".
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.
For further information, please contact:
President and Chief Executive Officer
(416) 419 5192
About the Company
Nordic Gold Inc. is a junior mining company with a near production gold mine in Finland. The Laiva Gold Mine is fully built, fully permitted and financed to production via a gold forward sale agreement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company's future performance. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.
The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.