Nordic Mining Acquires Shares

The motive for the acquisitions is to strenghten Nordic Mining´s business and establish the basis for a large technological focused mining company.

The parties have valued Nordic Mining to NOK 105 millions (NOK 6.97 per share) and valued Gexco, taking into consideration 100% of the shares and options, to approximately NOK 218 millions. The negotiated value of MoMin is NOK 60 millions.

Nordic Mining will acquire Gexco and MoMin by issuing shares in Nordic Mining as consideration. The shareholders of MoMin will receive 8,608,321 consideration shares. The shareholders of Gexco will receive 1 share in Nordic Mining for each 11,73 share they hold in Gexco.

Nordic Mining will, as soon as practically possible, make a public offer for all shares in Gexco at the same exchange ratio and conditions as Nordic Mining has agreed with the main shareholders of Gexco.

The agreement is subject to due diligence, that Nordic Mining is incorporated and listed at the Oslo Stock Exchange, and that the General Meeting in Nordic Mining resolves necessary capital increases.

Gexco´s business is mainly exploration and production of gold in Norway, and the company has through its 100% owned subsidiary, Bindal Gruver AS, access to estimated gold reserves of approximately 15 tons in Bindalen in Nordland, Norway. Gexco will start test production of gold in Bindalen this summer. Gexco is listed on the Nordic Growth Market stock exchange in Stockholm, Sweden. For further information with respect to Gexco, we refer to the company´s web pages at www.gexco.se.

MoMin`s business is exploration and production of metals. The company has a mine in Mofjellet and has interesting exploration rights regarding gold, silver, zinc, copper and lead. The company is conducting its business from Mo i Rana, Nordland, Norway.

Nordic Mining aims to be listed on both the Oslo Stock Exchange and Nordic Growth Market in Stockholm.

The agreement is an importaint first step in the strategic development of the business of Nordic Mining, especially within the field of gold and basis metals, and will provide valuable competence within the area of exploration and production of metals, says Ivar S. Fossum, future CEO of Nordic Mining.

Gexco has recent years had very positive development. Nordic Mining will offer an exciting combination of technology and competence that increases the possibility for further success, says Jon Fangel, CEO of Gexco;

Nordic Mining´s EM technology rights may be an important contribution to explore MoMin´s resources in the Mo mountain and to revitalise the mining city of Mo i Rana, says Trond Refseth, CEO of MoMin.

The agreement is an important first step in the strategic development of Nordic Mining´s business, in particular within the field of gold and basis metals and the agreement will provide the company with valuable competence regarding exploration and production of metals. Gexco´s managing director, Jon Fangel, will be a part of the group management in Nordic Mining, says the coming CEO of Nordic Mining, Ivar S. Fossum.

Nordic Mining´s transactions form basis for a larger, technology focused mining company and proves that the demerger of the mineral activities was the right choice for Rocksource and Rocksource´s shareholders, says Trygve Pedersen, Acting CEO of Rocksource.

A detailed summary of the planned transactions will be published on Rocksource´s web page www.rocksource.com.

Oslo, 15.3.2006 Rocksource ASA

Trygve Pedersen Acting CEO

+47 90 09 77 41

Contact persons: Nordic Mining (under incorporation) Jan Sjølie, tlf. + 47 90 09 46 85

Gexco AB: CEO Jon Fangel, tlf. + 46 735 31 00 35
 

Published: 29.03.2006