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Press release March 28, 2022
Stockholm 15:00 CET

   
Press release: Stockholm, March 28, 2022, 15.00 CET

Sotkamo Silver AB's wholly owned subsidiary Sotkamo Silver Oy (the "Company") has entered into a EUR 14,600,000 senior loan agreement (the "New Senior Loan") as a part of the refinancing of the Company's instruments that was announced on 11 January 2022.

Summary of the new senior loan agreement:
  • The New Senior Loan carries an annual interest of EURIBOR 12 months (min. 0 %) and a margin of 6.5 %
  • The term of the New Senior Loan is 4 years and the termination date will be 31 March 2026
  • The New Senior Loan shall be paid in annual instalments as follows: (i) EUR 1,500,000 on 31 March 2023, (ii) EUR 2,500,000 on 31 March 2024, (iii) EUR 4,000,000 on 31 March 2025 and (iv) the outstanding amount on 31 March 2026
  • The New Senior Loan has an equity ratio covenant of 25 % and a net debt to EBITDA covenant of 4.00:1 (during the first two years) and 3.50:1 (thereafter)
  • The margin of the New Senior Loan is linked to sustainability compliance criteria, which include yearly targets of reducing of nitrogen load on water, increasing the relative share of renewable electrical energy usage, and recycling.
  • The security package of the New Senior Loan comprises of the following securities:
  • by Sotkamo Silver AB, a parent company guarantee;
  • by Sotkamo Silver AB, the pledge of shares of the Company and the pledge of certain intra-group receivables, and
  • by the Company, the pledge of the mining concession of the Company's operations, the pledge of real estate mortgage notes, and the pledge of floating charge notes.

In addition, the Company has completed the written procedure (the "Written Procedure") relating to the terms and conditions (the "Terms and Conditions") of its EUR 13,200,000 Senior Secured Fixed Rate Notes (ISIN: FI4000315379) (the "Notes") which was initiated 4 March 2022.

The proposed amendment to section 8.1 (Redemption at maturity) of the Terms and Conditions to permit the possible early redemption from 31 March to the Final Maturity Date, 27 June 2022 was approved in the Written Procedure by the Noteholders by an approximately 87 % majority. All of the participants of the Written Procedure were in favour of the amendment. Therefore, definition of early redemption period was added to the Terms and Conditions.

The Company intends to use its right for early redemption and redeem the Notes at an amount per Note equal to 100 per cent of the Nominal Amount (as defined in the Terms and Conditions), together with accrued but unpaid interest (the "Redemption Price") on or about 1 April 2022.

With the New Senior Loan of EUR 14,600,000 and the new convertibles of EUR 6,401,920 (as released on 24 March 2022), Sotkamo Silver has successfully completed the refinancing of its financial instruments maturing in 2022.

Aktia Alexander Corporate Finance Oy has acted as Sotkamo Silver's financial advisor, Advokatfirmaet Schjødt As has acted as Sotkamo Silver's Swedish legal advisor and Borenius Attorneys Ltd has acted as Sotkamo Silver's Finnish legal advisor in connection with the transaction.

 
  

Stockholm, March 28, 2022

Sotkamo Silver AB

Erkki Kuronen, CEO

  
Contact person

Erkki Kuronen, CEO, tel. +358 50599 3539

This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act.The information was submitted for publication, through the agency of the contact persons set out above on March 28, 2022, at 15:00 CET.

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

About Sotkamo Silver AB

Sotkamo Silver's business concept is to develop mineral deposits with regards to human society and environment. The Company owns the Silver Mine in Sotkamo which started production in March 2019. In addition, the Company holds mining and exploration rights to precious and base metal deposits in Finland.

Sotkamo Silver applies SveMin's & FinnMin's own rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to publish mineral resources and ore 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 on NGM Main Regulated Equity in Stockholm and SOSI1 on Nasdaq Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Read more about Sotkamo Silver on www.silver.fi

The Company's press releases, and financial reports are distributed via Cision Sverige and are available on www.silver.fi