Scandinavian Minerals Limited

Scandinavian Minerals Limited

February 28, 2008 16:13 ET

Scandinavian Minerals Announces Election of New Director at Annual Meeting

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2008) - Scandinavian Minerals Ltd. (TSX:SGL)(FRANKFURT:W3M) is pleased to announce that at the Annual and Special Meeting of Shareholder held today in Toronto Mr. Tuomo Makela was elected to the Company's Board of Directors.

Mr. Makela is a Finnish citizen with extensive experience in the mining and metals industry having worked with the Outokumpu metal group for more than 30 years. Mr. Makela is currently President of Outokumpu Mining OY and is also President of Escanor Oy, a private mining advisory services company.

Mr. Makela is also a Senior Advisor to Finnish Industry Investment Inc., a Finnish Government Company which invests in growth companies active in Finnish business, including the mining sector, and which recently invested approximately $14.4 million in Scandinavian Minerals and now holds about 6.7% of the Company's shares.

Mr. Peter Walker, President & CEO of Scandinavian Minerals, said, "We are delighted to welcome Tuomo Makela as a Director and, with his extensive mining and Finnish business experience, we look forward to his contribution and advice."

Other Business at Annual Meeting

All other items of business before the Shareholders Meeting were approved, including approval of a new 10% Stock Option Plan and the adoption of a Shareholders Rights Plan (see SGL Press Release January 30, 2008).

Shareholders also approved the prior grant of stock options on a total of 305,000 shares to five employees and a director exercisable at prices between $5.35 and $8.00 per share for periods of five years.

The Kevitsa project - update

At the Meeting, Mr Peter Walker, President & CEO gave an update on progress at the Company's 100%-owned Kevitsa nickel-copper-PGE project in Finland.

The Feasibility Study for the Kevitsa project was started in April 2007. The Study is being coordinated by St Barbara LLP of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj and the autogous grinding mills have been ordered from Outotec to meet the targeted start up date of mid 2010. The Company has also commenced a further pilot plant program in order to optimise the grinding and flotation circuit for the proposed processing plant.

The Feasibility Study, which is expected to be completed in June 2008, is based on an open pit operation mining approximately 5 million tons per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters. The ongoing feasibility study will also compare the economics of the Company conducting its own mining rather than using a mining contractor as first contemplated.

Kevitsa, situated in northern Finland, is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The Kevitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby. An infill drilling program is currently being carried out for pit optimisation purposes and construction of site infrastructure has commenced. The mining and environmental permits are expected to be received in the second and third quarters of calendar 2008 respectively.

A senior mine management and technical team has been assembled and most of the senior positions have been filled with experienced personnel, including the Mine Superintendent, Chief Geologist, Mill Superintendent, Senior Technical Consultant and Financial Manager.

Because of increasing capital costs in the mining industry generally, the Company expects that the capital costs of the Kevitsa project will be substantially greater that the EUR 86 million EURO estimated in the 2006 Pre-Feasibility Study. Scandinavian Minerals is in a strong financial position and at February 28, 2008 held approximately $77 million in cash.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol W3M. The Company's current focus is the development of its 100%-owned Kevitsa nickel-copper-PGE project in northern Finland.

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.

Contact Information

  • Scandinavian Minerals Limited
    John Kearney
    (416) 203-6128
    (416) 368-5344 (FAX)
    Scandinavian Minerals Limited
    Chris de Saint-Rome
    Corporate Development Advisor
    (514) 802-3377
    Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    (+44) 7717-223909
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803