Nordic Mining secures $7.5M lifeline to keep Engebø mine running to mid-October
What's the deal? Nordic MiningDealroom has a profile for this one. Try Dealroom → has secured $7.5 million in bridge financing to keep operations going until mid-October. Its subsidiary Engebø Rutile and Garnet ASDealroom has a profile for this one. Try Dealroom → reached the deal with bondholders, expanding an existing loan by $30 million on unchanged terms — but drawing only 25%, or $7.5 million, in cash.
Why now? The company is waiting on a Norwegian government decision on a temporary emissions permit, expected during September. Norway's Supreme Court ruled this summer that the original permit for depositing mining waste in the Førdefjord was invalid.
What's the endgame? Nordic Mining had recently said it was working to raise $10–15 million to fund operations through November. The bridge deal falls short of that, but the company expects it to carry it through the government's permit ruling, and it also won new debt repayment deferrals to October 15.
What could go wrong? The mine has struggled to reach full capacity, prompting Nordic Mining to lower its production outlook. Bondholders commissioned a technical review from SRK ConsultingDealroom has a profile for this one. Try Dealroom → that has taken longer than expected; the report is due in the coming weeks.
The permit decision is not guaranteed. The Norwegian Environment Agency recently advised granting a three-year permit, but climate and environment minister Andreas Bjelland Eriksen called it "my most difficult case as minister" (translated from Norwegian).
The stock rose briefly after Monday's announcement before flattening. It remains down 89% for the year.
The signal: At $7.5 million, this ranks among the larger debt rounds raised by Norwegian companies, sitting in the 90th percentile all-time. For Nordic Mining, though, it buys weeks, not certainty — a stopgap tied entirely to a regulatory decision beyond its control.
Read more: e24.no
Image credit: Natur og Ungdom
