Nordic Mining secures emergency financing following bondholder approval
Subsidiary Engebø Rutile and Garnet has received approval for a debt restructuring and financing package to stabilize its financial position.
Nordic Mining ASA confirmed that bondholders of its subsidiary, Engebø Rutile and Garnet (ERG), have approved an emergency financing plan. The agreement involves modifications to existing senior secured bond arrangements and related royalty obligations.
The financing package provides an immediate injection of USD 3 million, with an option for an additional USD 3 million in capital. These funds are structured as super senior financing, granting the lenders priority repayment status over existing debt.
This move follows ongoing efforts by the company to address liquidity challenges associated with its Engebø project. The restructuring also includes amendments to intercreditor agreements, which define the legal hierarchy of debt obligations during the repayment process.
The approval allows Nordic Mining to proceed with the terms outlined in the summons for a written resolution, providing a short-term buffer as the company manages its capital requirements.