Scandinavian Minerals Limited

Scandinavian Minerals Limited

October 17, 2006 12:01 ET

Scandinavian Minerals Announces Closing of Private Placement of $10 Million

TORONTO, ONTARIO--(CCNMatthews - Oct. 17, 2006) -

Not for Dissemination into the United States or through U.S. Newswire Services

Scandinavian Minerals Limited (TSX:SGL) today announced that it has closed its recently announced private placement financing pursuant to which it issued an aggregate of 2,000,000 common shares at a price of $5.00 per share for gross proceeds of $10,000,000. Paradigm Capital Inc. acted as underwriter in connection with the financing, in connection with which it received a cash commission together with an aggregate of 100,000 compensation warrants, each such compensation warrant entitling the holder to acquire one common share of Scandinavian Minerals Limited at a price of $5.15 until October 17, 2007.

The proceeds of the offering will be used to fund further development of the Company's 100%-owned Kevitsa, Finland, nickel-copper-PGE property and for general corporate purposes.

About Scandinavian Minerals

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 Kevitsa 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.

Contact Information

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