Scandinavian Minerals Limited
TSX : SGL

Scandinavian Minerals Limited

June 06, 2007 09:29 ET

Scandinavian Minerals Closes $35 Million Financing

TORONTO, ONTARIO--(Marketwire - June 6, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Scandinavian Minerals Ltd. (TSX:SGL) is pleased to announce that it has closed its recently announced bought deal financing pursuant to which it issued an aggregate of 4,000,000 common shares of Scandinavian Minerals at a price of C$8.75 per share for total gross proceeds of C$35 million. A syndicate led by Paradigm Capital Inc., and including Canaccord Capital Corp., acted as underwriter for the financing. The common shares were offered in Canada by way of a short-form prospectus.

The net proceeds of the offering will be used (i) for the advancement towards production of the Company's Kevitsa nickel-copper-PGE (Platinum Group Elements) project located in Finland; (ii) to complete the bankable feasibility study that was commenced in April 2007, and (iii) for general corporate purposes.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL". 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.

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. The securities being offered have not been offered and will not registered under the United States Securities Act of 933, as amended (the "The 1933 Act") or any state securities laws. Accordingly, they may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is granted.

Contact Information

  • Scandinavian Minerals Limited
    John Kearney
    Chairman
    (416) 203-6128
    (416) 368-5344 (FAX)
    Email: info@scandinavianminerals.com
    Website: www.scandinavianminerals.com
    or
    Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    011-44-7717-223909
    or
    Scandinavian Minerals Limited
    Chris de Saint-Rome
    Corporate Development Advisor
    (514) 802 3377
    or
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803