Scandinavian Minerals Limited

Scandinavian Minerals Limited

December 12, 2007 08:00 ET

Scandinavian Minerals Closes $40 Million Financing

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2007) - Scandinavian Minerals Ltd. (TSX:SGL)(FRANKFURT:W3M) is pleased to announce that it has closed its recently announced private placement financing with leading Finnish investment institutions and has issued an aggregate of 5,000,000 common shares at a price of C$8.00 per share for total gross proceeds of C$40 million.

The lead investors were Finnish Industry Investment Ltd. and Etera Mutual Pension Insurance Company, which now hold approximately 6.7% and 7.4%, respectively, of the Company's shares.

Finnish Industry Investment Ltd., based in Helsinki, Finland, is a company wholly owned by the Finnish Government. Its purpose is to invest in growth companies active in Finnish business, including the mining sector.

Etera, also based in Helsinki, is a major provider of pension insurance services to Finnish business, and, as part of this activity, also manages a number of investment funds.

Other participants in the private placement were a group of Finnish institutions, mutual funds and investors.

United Bankers Group, a respected Finnish private bank providing brokerage, asset management and fund management services in Finland advised Scandinavian Minerals on this financing.

The common shares issued in the financing are subject to a 4 month statutory hold period from 12 December 2007.

Use of Proceeds

The Company plans to use the net proceeds of the private placement to fund advancement of its wholly owned Kevitsa nickel-copper-PGE (platinum group elements) project in Finland.

The Company recently ordered the grinding mills for the Kevitsa project from Outotec Oyj. The value of the order is in excess of EUR 20 million (Euro) and delivery is scheduled for the first quarter of 2010. Outotec Oyj (formerly Outokumpu Technology Oyj), headquartered in Finland, is one of the world's largest providers of process solutions, technologies and services for the mining and metallurgical industries and is a leading supplier of mineral processing equipment. In June, 2007 Outotec was retained by Scandinavian Minerals to carry out engineering work for the Kevitsa project, including the design of the planned processing plant.

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.

Following completion of this financing the Company has 26,996,899 common shares and has cash and cash equivalents of approximately $78.8 million.

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