Nuuk, 2014-11-10 07:50 CET (GLOBE NEWSWIRE) -- NunaMinerals A/S (COPENHAGEN: NUNA.CO / NUNA.DC) wishes to announce that it is now in advanced discussions with the Government of Greenland about a capital increase of 4.5 mDKK.. The capital injection is expected to be formally confirmed in the coming days.
Government of Greenland, NunaMinerals’ largest shareholder has a 33.4% interest in the company. The company has more than 3,000 shareholders.
Ole Christiansen, CEO of NunaMinerals stated, “The Government’s statement is positive. The continued support of the Company’s largest shareholder sends a positive signal to all investors. In response to the severe investment climate for the exploration industry at present, NunaMinerals is in the process of implementing substantial cost reduction initiatives with immediate effect, combined with an increase in partner funded activities. Uncertainty remains about the Company’s ability to complete a major capital increase to be able to undertake the desired resource drilling program at the flagship Vagar Gold Project, but the Government’s support strengthens NunaMinerals’ short term working capital allowing the company to continue dialogue concerning external funding. NunaMinerals’ exploration partners Korea Resources Corporation and Greenland Rare Earth Projects Ltd funded approximately 7 mDKK of exploration expenditures during 2014. NunaMinerals expect to see further increases in the level of partner funded activities during 2015, where NunaMinerals will be the operator”.
On behalf of the board
Ole Christiansen, CEO & Birks Bovaird, Chairman
ABOUT NUNAMINERALS
NunaMinerals A/S is Greenland’s leading company in the exploration of precious and base metals as well as strategic metals. Firmly rooted in Greenland, the company is well positioned to exploit the mineral potential of one of the world’s few remaining unexplored regions. The geology of Greenland has a number of similarities with that of long-established mining jurisdictions such as Canada, Scandinavia, South Africa and Australia, which all have substantial mineral deposits of gold, platinum, nickel and copper, among other commodities. Setting up partnerships that would bring further technical and financial expertise to the development of the company’s exploration prospects is a key element of NunaMinerals’ business model. NunaMinerals began operations in 1999 and is headquartered in Nuuk, Greenland. The company is listed at NASDAQ OMX Copenhagen A/S under the symbol “NUNA” (Copenhagen: NUNA.CO). For more information, please visit our website: www.nunaminerals.com.
Forward-looking statements contained in this announcement, including descriptions of NunaMinerals’ exploration and development projects, strategy and plans, as well as expectations for future revenue and earnings, reflect NunaMinerals’ current views and assumptions with respect to future events and are subject to certain risks, uncertainties and assumptions. There are many factors that may cause actual results achieved by NunaMinerals to differ materially from expectations for future results and expectations that may be expressed in or form an assumption of such forward-looking statements. Such factors include risks related to exploration, development and mining activities, uncertainties related to the results of NunaMinerals’ exploration and development projects, including risks of delays or closure of projects, price falls, currency fluctuations and changes in concession terms, legislation and administrative practices, as well as competition risk and other unforeseen factors. If one or more of such risks or factors of uncertainty were to materialise, or should one or more of the statements provided prove to be incorrect, actual developments may differ materially from the forward-looking statements contained in this announcement. NunaMinerals is not under any duty to update the forward-looking statements contained in this announcement or to adjust such statements to actual results, except as may be required by law.
For further information:
Ole Christiansen, CEO, phone: +299 36 20 01, mobile: +299 55 18 57 oc@nunaminerals.com
Ole Christiansen, CEO, cellphone +299 55 18 57, e-mail oc@nunaminerals.com