Scandinavian Minerals Limited

Scandinavian Minerals Limited

April 11, 2006 08:00 ET

Scandinavian Minerals Announces C$5.3 Million 'Bought Deal' Private Placement Financing


This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.

SCANDINAVIAN MINERALS LIMITED (TSX:SGL) is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (the "Underwriter") which has agreed to purchase, on a bought deal private placement basis, 1,300,000 common shares (the "Common Shares") at a price of $4.10 per Common Share (the "Offering") for an aggregate purchase price of $5,330,000.

Scandinavian Minerals plans to use the net proceeds of the Offering to fund advancement of its Keivitsa Nickel-Copper-PGE project in Finland and for general corporate purposes.

Scandinavian Minerals will pay the Underwriter a cash commission of 6.5% of the gross proceeds of the Offering. The Underwriter will also receive Compensation Options entitling it to purchase that number of Common Shares that is equal to 5.0% of the total number of Common Shares sold pursuant to the Offering at a price equal to the greater of C$4.10 and the lowest price permitted by the Toronto Stock Exchange. The Compensation Options will expire 12 months after the closing of the Offering.

The Common Shares will be subject to a 4 month statutory hold period from closing and the Offering is scheduled to close on or about April 26, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Scandinavian Minerals Limited 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 Minerals 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 common shares trade on the Toronto Stock Exchange under the symbol "SGL".

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Scandinavian Minerals Limited
    Roderick Chisholm
    (416) 203-6128
    Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    Harbour Financial Inc.
    Brian Barbour
    (403) 813-5832
    Harbour Financial Inc.
    Tom Hart
    (403) 701-4278