SOTKAMO SILVER AB HAS COMPLETED PREFERENTIAL AND DIRECTED SHARE ISSUE OF 49.1 MILLION SEK

NASDAQ OMX Helsinki Oy 

21.06.2012 14:57
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SOTKAMO SILVER AB HAS COMPLETED PREFERENTIAL AND DIRECTED SHARE ISSUE OF 49.1
MILLION SEK 

In the recently concluded rights issue was 64 363 001 shares and in the
non-preferential rights issue 30 000 000, a total of 94 363 001 shares, which
provides the Company with about 49.1 million before issue costs. The subscribed
amount is about 30 % of the total offer. By the issuances, the number of shares
increased to 353 844 935 and the share capital increased by SEK 37 745 200 to
SEK 141 537, or with Euro 4,2 million to . 

Based on the new shares under the offer, investors have received a total of 943
630 Warrants 2012/13, each of which entitles the holder to subscribe for 25
shares of SEK 0.70 per share latest in November 2013. 

Number of issued shares represent 26,7 % of the total number after issuance.
The number of shares to be subscribed with warrants represents about 6,3 % if 
the total number of warrants is subscribed for in full. 

In accordance with the resolution of the Extra ordinary Shareholder Meeting a
consolidation of shares will take place so that 25 shares will be 1 in early
July, after all new shares have been registered with the Companies Registration
Office. New number of shares, is preliminary 14 153 797. After the
consolidation one warrant entitles to subscribe for one share at SEK 17.50 per
share, a total of 943 630 shares. 

The reason for the proposed issuance was to secure about half the capital that
the Company needs for development and completion of Sotkamo Silver's deposit in
Taivaljärvi pre-production and to obtain new Finnish investors before the
parallel listing on NASDAQ OMX Helsinki Stock Exchange. 

The lesser amount of issued shares and warrants than planned affects the
ability to execute the investments in the Taivaljärvi Silver Mine. The board
and the management group are reviewing the conditions to carry out parts of the
key investments in the investment plan. The initial investment plan remains
until further notice 

The accomplished share issues still allow us to develop the project further and
the board and management continues to look for further financing possibilities,
work with the environmental license and construction permit. The company is
negotiating with the equipment suppliers and plans to choose of equipment
supplier during 2012.. 

'As a result of the listing at the Helsinki Stock Exchange, investing in our
shares will become much easier for Finnish investors. We expect that by doing
this parallel listing we can increase the interest in our Company
significantly. This gives the possibility for present Finnish shareholders to
move their shares to the Helsinki Stock Exchange.' Comments Timo Lindborg CEO. 


Financial advisors in those issues have been Stockholm Corporate Finance and E.
Öhman J:or Securities Finland. Legal advisers have been Setterwalls in
Stockholm and Peltonen LMR in Helsinki 



Stockholm, 21th June 2012

Timo Lindborg, CEO



About Sotkamo Silver AB:

Sotkamo Silver AB's business concept is to exploit mineral deposits in the
Nordic countries with regards to human society and environment. Sotkamo Silver
owns, through its subsidiary mineral deposits, which contains silver and gold
in Finland. The Company's main development project is the 

Taivaljärvi Silver Mine.

Sotkamo Silver applies SveMin's & FinnMin's respective rules of reporting for
public mining & exploration companies. Sotkamo Silver has chosen to report
mineral resources and ore reserves according to the internationally accepted
JORC or NI 43-101-code. The company applies International Financial Reporting
Standards (IFRS) as approved by the European Union. 

The shares are traded at the Burgundy market place and NGM Equity in Stockholm.
The ticker symbol is SOSI. 

ISIN-code for Sotkamo Silver shares is SE0001057910.

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507
News Source: NASDAQ OMX



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Company:      NASDAQ OMX Helsinki Oy
              
               
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ISIN:         SE0001322157
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