Nuuk, 2015-01-19 07:50 CET (GLOBE NEWSWIRE) --
NunaMinerals A/S’ Board of Directors has today decided an extraordinary accounting write-down of the Company capitalized exploration costs to 0 DKK under due consideration of the company’s current liquidity position.
Capitalized exploration costs amounted according to the most recent quarterly announcement (September 30, 2014) 79.5 mDKK. Subsequently, the company capitalized further 2.5 mDKK, so that the overall depreciation amounts to 82.0 mDKK.
The company is thus expecting a loss of around 85 mDKK (annual report for 2014 is not yet prepared, cf. the financial calendar), and thus a negative equity of around 10 mDKK.
Based on an external evaluation of NunaMinerals’ exploration, the Company's project portfolio is estimated to be worth in the region of 76 mDKK on a going concern assessment without regard to the company’s current liquidity position.
As the market is aware the company's management over the past few years actively sought to implement a major recapitalization, which unfortunately has not proved possible. Likewise, the company has difficulties in financing its ordinary operation.
As the current liquidity positions and funding is inadequate to continue the operation as well as exploration and evaluate of the exploration portfolio, the management of the company does not see other ways than to make the full accounting depreciation of the incurred exploration costs.
The Board of Directors expects as soon as possible to publish a notice to convene an extraordinary general meeting to present the proposals, which the Government of Greenland has required as a condition to provide the most recent loan of DKK 4.5 million to the company, Reference is made to company announcements dated 3 and 17 December 2014.
However, if a solution with the support of the shareholders is not found and the company is not able to secure its liquidity position, it could ultimately result in dissolution of the company.
For additional Information, Please Contact:
Ole Christiansen, President and CEO, mobile: +299 55 18 57
Birks Bovaird, Chairman of the Board, mobile: +1 416 518 0100
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ABOUT NUNAMINERALS A/S
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 countries such as Canada, 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 its operations in 1999 and has its headquarter 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.
This announcement contains forward-looking statements on NunaMinerals’ future financial developments and financial results as well as other statements that are not historical facts and that may prove to be incorrect. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the offered shares in any jurisdiction or to any person in which or to whom it is unlawful to make such an offer. This announcement is not for release, publication or distribution in the United States of America, Canada, Australia or Japan. Prospective investors should seek professional investment advice and examine relevant risks and legal aspects, including tax aspects, which could be relevant in connection with an acquisition of the shares.
Ole Christiansen, President and CEO, mobile: +299 55 18 57
Birks Bovaird, Chairman of the Board, mobile: +1 416 518 0100