Scandinavian Minerals Limited

Scandinavian Minerals Limited

November 02, 2005 07:00 ET

Scandinavian Gold Announces Closing of Final Tranche of Private Placement of $2.85 million

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2005) - Scandinavian Gold Limited (TSX:SGL) today announced that it has closed the second and final tranche of its recently announced private placement financing pursuant to which today it issued an aggregate of 1,300,000 common shares at a price of $1.90 per share for gross proceeds of $2,470,000. Clubb Capital Limited acted as lead agent in connection with the second tranche of the financing and, in connection therewith, received a commission which it opted to receive in the form of 24,200 common shares of Scandinavian Gold Limited (at a deemed price of $1.90 per share), with the balance payable in cash. Clubb Capital Limited and its sub-agent also received an aggregate of 91,000 compensation warrants, each such compensation warrant entitling the holder to acquire one common share of Scandinavian Gold Limited at a price of $1.90 until May 1, 2007. This transaction remains subject to final Toronto Stock Exchange approval.

The proceeds of the offering will be used to fund further development of the Company's 100%-owned Keivitsa, Finland, nickel-copper-PGE property including the pre feasibility study scheduled for completion by February 2006 and for general corporate purposes.

About Scandinavian Gold

Scandinavian Gold is a Canadian company exploring for precious and base metals in Scandinavia, with emphasis on Finland. The Company is currently developing one of Finland's largest mineral discoveries, the 100%-owned Keivitsa nickel-copper-PGE project. Scandinavian Gold believes that Finland offers excellent potential for large-scale discoveries in under-explored terrain, combined with a favourable, well-administered mining law, clear security of title and long-established political and economic stability. The Company's 12.8 million common shares trade on the Toronto Stock Exchange under the symbol SGL.

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