Rights issue and directed issue 2023

The Share Issues and their terms in brief

The Share Issues consist of a Rights Issue of approximately EUR 4.0M and a Directed Issue of approximately EUR 1.0M, providing the Company with gross proceeds of approximately EUR 5.0M upon full subscription.
The proceeds from the Share Issues will primarily be used to increase the working capital.
The Directed Issue will be directed to a limited number of institutional investors.
The maximum number of new shares to be issued is 100,183,105 in the Rights Issue and 25,000,000 in the Directed Issue, in total a maximum number of 125,183,105 new shares.
The record date for the right to receive subscription rights will be 20 February 2023. Those who are registered as shareholders on the record date shall receive one (1) subscription right for each share held in Sotkamo Silver. Two (2) subscription rights entitle to subscription for one (1) new share in the Company.
The subscription price is EUR 0.04 or SEK 0.45 per share in the Rights Issue and the Directed Issue.

Background and reasons

The prevailing general economic and market situation has had an impact on the Sotkamo Silver’s operations and profitability during 2022. The sharply increased prices of energy and consumables, the decrease in metal prices during the second and third quarter of 2022, as well as the great uncertainty and volatility associated with energy and metal prices, has required measures to ensure the profitability of production and the continuity of operations. The Company therefore needs to strengthen its financial position and requires additional working capital to meet the variations. Secondly, the Share Issues are carried out in order to finance infill drilling in the silver mine to extend the life of mine until 2030 and to improve the company's cost efficiency.