SOTKAMO SILVER AB PUBLISHES PROSPECTUS FOR THE 186 MSEK RIGHTS ISSUE


The Board of Directors of Sotkamo Silver AB (publ) (\"Company\") has
prepared a prospectus regarding the upcoming rights issue of shares,
which today has been approved and registered by the Swedish Financial
Supervisory Authority (Sw. Finansinspektionen). The prospectus has also
been passported to Finland.

Shares in Sotkamo Silver is traded on NGM Equity in Stockholm and on
Nasdaq Helsinki.

 


Prospectus, present documents and technical reports

Copies of the prospectus, technical reports, annual reports including
audit reports and interim reports are made available in electronic form
on the Company\'s website

http://www.silver.fi/sivu/en/prospectus/

and www.silver.fi/sivu/en/reports\_and\_drilling\_results

 

* PROSPECTUS
* Sotkamo Silver, Silver Mine Bankable Feasibility Study Update, March
  22nd 2016, CTS Engtec Oy
* Review of the Sotkamo Silver Mining Plan and Mineral Reserves February
  2016
* Mineraltillgångsuppdatering “Sotkamo Silver Ag-Zn-Pb-Au Deposit:
  Mineral Resource Estimate Update, 2014”
* Sotkamo Silver, Silver Mine Bankable Feasibility Study Update, March
  25th 2014, CTS Engtec OY

Summary

* Shareholders in the Company have a pre-emptive right to subscribe for
  one (1) unit consisting of four (4) shares and one (1) warrant of
  series 2016/2017, for each shares held on the record-date June 9th
  2016
* The subscription price for each Unit is 9 SEK (corresponding to 2,25
  SEK for each new share)
* The warrant gives the right so subscribe for one (1) share at 4 SEK in
  August 2017
* The Company will receive about 186 MSEK, before issue costs, if the
  Issue is fully subscribed and, in addition, about 82 MSEK if the
  warrant is fully subscribed for.
* A Prospectus for the Issue has been published on June 14th 2016.
* Subscription period is June 15th to June 29th 2016

 

Background and rationale

The Extra Shareholders meeting of Sotkamo Silver AB (publ) (“Sotkamo
Silver or the “Company”) decided to approve the Board’s resolution on a
rights issue of shares of approximately 186 MSEK (before issue costs)
and warrants of approximately 82 MSEK in order to finance completion of
the plant and commence production in the Company’s Silver Mine in
Sotkamo.

Total Capital Expenditure is expected to be about 320 MSEK, of which 186
MSEK is covered by this proposed Rights Issue. The Company expects that
the remaining part of financing needs will be covered by debt
instruments, loan and vendor-financing. In addition, negotiations are
underway regarding the potential sale of assets in order to speed up the
start of the construction process. The Company’s expectation regarding
the remaining part of the financing requires that a total financing
package can be implemented before the end of the year 2016.

Guarantee commitments

The Company has received underwriting commitments from a group of
qualified investors of 10 M€ of the Issue. The Company has received pre
signed subscription-commitments of 4 M€ of the Issue from the three
major shareholders, whereby 14 M€, which is about 70% of the Issue, is
guaranteed from pre-subscription and underwriting commitments.

Preliminary time table for the Righs issue (all dates 2016)

14 June –          The Prospectus is published

15 - 27 June      Trading in Unit rights on NGM Equity

15- 22 June       Trading in Unit rights on Nasdaq Helsinki

15- 29 June       Subscription period (subscription in cash payment
based on Unit rights)

15 June –          Trading in Units starts on NGM Equity and Nasdaq
Helsinki. Trading will continue until registration of the Issue at the
Swedish Companies Registration Office is completed.

1 July –             Preliminary outcome of the Issue

Advisors

Stockholm Corporate Finance is acting as financial advisor, A1 Advokater
and DLA Piper legal advisors to Sotkamo Silver. Aqurat Fondkommission
och S-Bank Ltd are acting as Issuing agents in this Issue.

Sotkamo Silver AB (publ) discloses the information provided herein
pursuant to the Swedish Securities Markets Act and/or the Financial
Instruments Trading Act.

The official Stock Exchange Releases are given in Swedish and there may
be slight differences in the translated versions.

Stockholm June 14th 2016

Sotkamo Silver AB (publ) Timo Lindborg, CEO

 

Important information

Information in this press release is not an offer to acquire, subscribe
for or otherwise trade in shares or other securities in Sotkamo Silver.
Invitation to interested persons to subscribe for shares in Sotkamo
Silver will only be made through the prospectus that Sotkamo Silver
expects to publish around June 14th 2016.

This press release may not, directly or indirectly, be released or
published or distributed in or into the United States, Canada, Japan,
Australia or any other jurisdiction where participation would require
further prospectus, registration or other measures than those required
by Swedish law. The Offer is not being made to, and acceptance forms
will not be accepted from, subscriber (including shareholders), or
persons on behalf of the subscriber, in these countries or persons in
any other country where the application for subscription of preference
shares would contravene applicable laws or regulations or require that
additional prospectuses, or registration or other measures in addition
to those required by Swedish law. The information in this press release
may not be forwarded or reproduced in ways that conflict with such
restrictions or would such claims. Actions contravene the restrictions
may constitute a violation of applicable securities laws.

No interim shares or shares issued by Sotkamo Silver (\"Securities\")
have been or will be registered under the United States Securities Act
of 1933 (the \"Securities Act\") or the securities laws of any state or
other jurisdiction of the United States and may not be offered, pledged,
sold, resold, delivered or otherwise transferred, directly or
indirectly, in the United States or to US persons as defined in
Regulation S under the Securities Act (\"Regulation S\"). Securities are
being offered outside the United States pursuant to Regulation S. There
will be no any offer of Securities in the United States or to United
States persons.

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in
the Nordic countries with regards to human society and environment.
Sotkamo Silver owns, through its subsidiary mineral deposits, which
contains silver and gold in Finland and exploration-potential targets of
zinc, lead, copper and gold in Norway. The Company’s main development
project is the Silver Mine project in the municipality of Sotkamo.

Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of
reporting for public mining & exploration companies. Sotkamo Silver
has chosen to report mineral resources and mineral reserves according to
the internationally accepted JORC or NI 43-101-code. The company applies
International Financial Reporting Standards (IFRS) as approved by the
European Union.

The ticker symbol is SOSI at NGM and SOSI1 in NASDAQ OMX Helsinki.

ISIN-code for Sotkamo Silver shares are SE0001057910.

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

Attachments

160614_PM_Prospekt_ENG_35b45.pdf