Scandinavian Minerals Limited
TSX : SGL
FRANKFURT : W3M

Scandinavian Minerals Limited

July 16, 2007 11:26 ET

Sprott Asset Management Increases Ownership to 16.7% of Scandinavian Minerals

TORONTO, ONTARIO--(Marketwire - July 16, 2007) - Scandinavian Minerals Limited (TSX:SGL)(FRANKFURT:W3M) announces that Sprott Asset Management Inc. ("Sprott") has on July 10, 2007 filed a Report under the Securities Act (Ontario) disclosing that as at June 30, 2007, Sprott exercise control or direction, on behalf of accounts fully managed by it, over 3,651,400 common shares, representing 16.7% of the issued and outstanding shares of Scandinavian Minerals, a net increase of 1,767,800 shares, or 6.1% from the previously announced security holdings on April 12, 2007.

In its filing Sprott has stated that the securities are being held for investment purposes and depending on market and other conditions, Sprott may from time to time in the future increase or decrease its ownership, control or direction over the shares of Scandinavian Minerals, through market transactions, private agreements or otherwise.

Sprott's managed accounts holding the shares include: Sprott Canadian Equity Fund; Sprott Bull/Bear RSP Fund; Sprott Hedge Fund L.P.; Sprott Hedge Fund L.P. II; Sprott Opportunities Hedge Fund L.P.; Sprott Opportunities Master Fund; Sprott Master Fund, Ltd., and the Sprott Managed Accounts.

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.

The Company holds cash of approximately $47 million and has 21.9 million outstanding common shares which trade on the Toronto Stock Exchange under the symbol SGL.

Contact Information

  • Scandinavian Minerals Limited
    John Kearney
    Chairman
    (416) 203-6128
    (416) 368-5344 (FAX)
    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
    Email: info@scandinavianminerals.com
    Website: www.scandinavianminerals.com
    or
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803