SOTKAMO SILVER SIGNS NEW SENIOR LOAN AGREEMENT WITH SUSTAINABILITY OBJECTIVES AND PUBLISHES RESULTS OF WRITTEN PROCEDURE FOR EUR 13,200,000 FIXED RATE SENIOR NOTES

Press release March 28, 2022
stockholm 15:00 CET

Press release: stockholm, March 28, 20223:00 p.m. CET

Sotkamo Silver AB’s wholly owned subsidiary Sotkamo Silver Oy (the “Company”) entered into a €14,600,000 senior loan agreement (the “New Senior Loan”) in connection with the refinancing of the Company’s instruments which was announced on January 11, 2022.

Summary of the new senior loan agreement:

  • The New Senior Loan bears an annual interest of EURIBOR 12 months (min. 0%) and a margin of 6.5%
  • The term of the New Senior Loan is 4 years and the termination date will be March 31, 2026
  • The New Senior Loan will be paid in annual installments as follows: (i) €1,500,000 to March 31, 2023(ii) €2,500,000 to March 31, 2024(iii) €4,000,000 to March 31, 2025 and (iv) the amount remaining due on March 31, 2026
  • The new senior loan has an equity ratio of 25% and a net debt to EBITDA ratio of 4.00:1 (in the first two years) and 3.50:1 (thereafter).
  • The margin of the new senior loan is tied to sustainability compliance criteria, which include annual targets for reducing nitrogen loading on water, increasing the relative share of renewable electric energy and recycling.
  • The New Senior Loan security package includes the following securities:
    • by Sotkamo Silver ABa guarantee from the parent company;
    • by Sotkamo Silver ABthe pledge of Company shares and the pledge of certain intra-group receivables, and
    • by the Company, the pledge of the mining concession of the Company’s operations, the pledge of immovable mortgage notes and the pledge of floating charge notes.

In addition, the Company has finalized the written procedure (the “Written Procedure”) relating to the terms and conditions (the “Terms and Conditions”) of its €13,200,000 Fixed Rate Senior Secured Notes (ISIN: FI4000315379) (the “Notes”) which was initiated March 4, 2022.

The proposal to modify section 8.1 (Redemption at maturity) of the Terms and Conditions to allow for the possible early redemption from March 31 to the Final Maturity Date, June 27, 2022 was approved in Written Procedure by the Bondholders by a majority of approximately 87%. All participants in the written procedure voted in favor of the amendment. Therefore, the definition of the prepayment period has been added to the general conditions.

The Company intends to use its right of early redemption and redeem the Notes at an amount per Note equal to 100% of the Nominal Amount (as defined in the Terms), plus accrued but unpaid interest (the “Price of Refund”) on or about April 1, 2022.

With the New Senior Loan of €14,600,000 and the new convertibles from €6,401,920 (as published on March 24, 2022), Sotkamo Silver successfully completed the refinancing of its financial instruments maturing in 2022.

Aktia Alexander Corporate Finance Oy acted like Sotkamo money financial advisor, Advokatfirmaet Schjødt As acted as Sotkamo money Swedish legal adviser and Borenius Lawyers SA acted like Sotkamo money Finnish legal counsel in connection with the transaction.

stockholm, March 28, 2022

Sotkamo Silver AB

Erkki KuronenCEO


Contact

Erkki Kuronen, CEO, tel. +358 50 599 3539

This information is information that Sotkamo Silver AB is required to make public in accordance with the EU Market Abuse Regulation and the Securities Markets Act. The information has been submitted for publication, through the contact persons indicated above on March 28, 2022at 15:00 CET.

Official Exchange announcements are given in Swedish and there may be differences in the translated versions.

On Sotkamo Silver AB

The business concept of Sotkamo Silver is to develop mineral deposits with respect to human society and the environment. The Company owns the silver mine in Sotkamo, which started production in March 2019. In addition, the Company holds mining and exploration rights to precious and base metal deposits in Finland.

Sotkamo Silver applies SveMin’s and FinnMin’s own reporting rules for public mining and exploration companies. Sotkamo Silver has chosen to publish mineral resources and ore reserves according to the internationally accepted code JORC or NI 43-101. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The ticker symbol is SOSI on NGM Main Regulated Equity in stockholm and SOSI1 on Nasdaq Helsinki.

ISIN code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Learn more about Sotkamo Silver on www.silver.fi

Company press releases and financial reports are distributed through Cision Sverige and are available at www.silver.fi

https://news.cision.com/sotkamo-silver/r/sotkamo-silver-has-signed-a-new-senior-loan-agreement-with-sustainability-targets-and-publishes-the-,c3534054

https://mb.cision.com/Main/15292/3534054/1555058.pdf

(c) Decision 2022. All rights reserved., sources Press Releases – English

Leslie M. Gill