Scandinavian Minerals Limited

Scandinavian Minerals Limited

January 15, 2007 16:15 ET

Scandinavian Minerals Files Interim Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Jan. 15, 2007) - Scandinavian Minerals Limited (TSX:SGL)(FWB:W3M) today reported that it has filed on SEDAR its Unaudited Financial Statements and Management's Discussion and Analysis for the three months ended November 30, 2006.

The Company reported a consolidated net loss for the quarter ended November 30, 2006 of $497,000 compared to a loss of $328,000 for the same period in 2005. The increase is due to higher administrative expenses and increased corporate activity.

During the period the Company expended $847,000 mainly on the Kevitsa nickel copper project in Finland, where pilot plant metallurgical testwork and diamond drilling was undertaken. During the Quarter the application for the mining permit was submitted to the Finnish Ministry of Trade and Industry, which is the responsible authority for mine permitting in Finland.

At November 30th, the Company's cash position was $15,361,000 up from $6,969,000 at August 31st primarily as a result of the financing of $9.1 million completed in October. This healthy cash position will enable the Company to continue with its plan towards the production at Kevitsa.

The current work on the Kevitsa, including further metallurgical testing and permitting, will form part of the full bankable feasibility study which is expected to start in the second quarter of calendar 2007, and is expected to take up to one year to complete at a preliminary estimated cost of $3.0 million. At the same time, detailed planning is under way for the upgrading of the present forest road, which connects Kevitsa to the main north-south highway in Northern Finland, located 7 km to the west of the property. Planning is also under way for the power and water supply to the project. Power will be sourced from a 21 MW hydroelectric dam on the Kitinen River, 6 km west of Kevitsa. The water supply will also be drawn from this river.

Kevitsa is one of the world's largest undeveloped nickel sulphide orebodies and is the Company's flagship project.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian public company based in Toronto, Canada and incorporated in 2003. The Company's shares are traded on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol "W3M". The Company is focused on the exploration and development of precious and base metals properties in Scandinavia and Finland. Scandinavian Minerals is currently developing one of Finland's largest mineral discoveries, the Kevitsa nickel-copper-PGE (platinum group elements) project, which is 100% owned by the Company.

Management believes that the Nordic region offers a unique combination of resource potential and political stability, combined with excellent infrastructure and high levels of industrial productivity and skills.

Contact Information

  • Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    Scandinavian Minerals Limited
    Roderick Chisholm
    (416) 203-2949
    Harbour Financial Inc.
    Brian Barbour
    (403) 813-5832
    Harbour Financial Inc.
    Tom Hart
    (403) 701-4278