Talvivaara shareholders approve issue of 26bn shares

Talvivaara Mining announced Friday that following an extraordinary general meeting (EGM) the group voted through a proposal to allow the board to undertake a share issue of 26bn shares.

Talvivaara Mining announced Friday that following an extraordinary general meeting (EGM) the group voted through a proposal to allow the board to undertake a share issue of 26bn shares.

The new shares will be issued at a price decided by the board and could be worth up to $338m, which will ensure the group's mine continues operating.

It has until the end of 2013 to issue the shares.

The group recently incurred additional costs following a waste water leak, resulting in a 57m euro loss in the fourth quarter.

The approval means that the company is able to repay its short-term and medium-term indebtedness, including the convertible bonds due in May 2013.

Last month the company announced that it has established interim financing arrangements with Nyrstar and Cameco, amounting to 12m euros and $10m, respectively, and had amended its revolving credit facility for 100m euros.

NR

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