Dannemora abandons new bond plans; waivers, maturity extended to May 9

By Caroline Salls

Pittsburgh, May 2 - Dannemora Mineral AB abandoned its plans for a new bond loan with warrants since it did not obtain enough commitments for the bond loan, according to a news release.

The company said it will continue discussions with investors on alternative financing solutions.

As previously reported, Dannemora Mineral and subsidiary Dannemora Magnetit said last month that they would recapitalize the group through an offering to investors to subscribe to bonds and warrants as part of a long-term financing solution for investments planned in connection with the Dannemora Mine.

In addition to a new bond loan, the company said the financing solution also included the conversion of the existing bond loan to shares in Dannemora Mineral and the conversion of outstanding convertible debt instruments.

In a separate Friday release, Dannemora said its bondholders agreed to extend the temporary waivers related to a $7.05 million March 22 interest payment, a Sept. 22, 2013 interest payment and a 50 million kronor minimum cash liquidity requirement to May 9.

The holders of Dannemora Magnetit's bond loan also agreed to further extend the maturity date of the subsidiary's bridge financing to May 9.

Dannemora Mineral is an iron ore producer based in Danderyd, Sweden.

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