Financing For Mustavaaran Kaivos.

FINANCING FOR MUSTAVAARA

Mustavaaran Kaivos Oy (MKOy) is pleased to announce it has raised an initial part of the financing needed (€ 15 million in total) to complete the feasibility study on its Mustavaara vanadium-iron project. The on-going feasibility study involves development and testing of a “state of the art” smelting process for Mustavaara.  Final products will be ferrovanadium and iron metal (pig iron), produced at competitive costs, low energy consumption and minimal environmental impact.  

The financing was obtained by issuing new shares to Tamares Mining Group B.V. and Ilmarinen Mutual Pension Insurance Company.  Mr. Tapani Järvinen, member of the board, also participated and has become a new shareholder of the company.

Tekes (the Finnish Funding Agency for Technology and Innovation) has recently provided a grant for pilot-scale smelting tests conducted by Swerea MEFOS, in addition to an earlier grant for concentrating test work at the pilot plant of the Geological Survey of Finland in 2012.

ELY-keskus (Centre for Economic Development, Transport and the Environment) is also providing financial support to MKOy in business development activities aimed at bringing the Mustavaara mine back into production.

 Jan Akkerman, managing director of MKOy comments:  “We are extremely grateful to Tekes and ELY-keskus for the financial support received and confidence expressed in our mission to re-open the Mustavaara mine. This support from the Finnish State is essential for junior mining companies like us, to attract the necessary funds especially during periods of economic recession like today.”

Additional information: Jukka Pitkäjärvi, Project Manager, Mustavaaran Kaivos Oy