Nordic Gold Inc (CVE:NOR) (OTCMKTS:FIEIF), which has been managed by Lionsbridge Capital Pty Ltd since July, released an open letter to shareholders Thursday outlining its plan to bring the company’s Laiva Gold Mine in Finland back online by June, 2020.
Recently-installed CEO Brian Wesson outlined a three-pronged plan of infusing the company with new capital, completing confirmatory technical work and ultimately returning the Laiva mine to production. He even proposed a company name change for good measure.
The gold mine has been on care and maintenance, but Wesson is confident the firm can restore the value of the asset.
“It is evident to Lionsbridge that the Laiva Gold Mine holds significant potential that was not able to be realized by previous operators,” the letter said. “The Laiva Mine, we believe, is a unique asset, with significant funds spent on two open pits and a state of the art processing facility all located in one of the world's best mining jurisdictions.”
READ: Nordic Gold takes critical step in restarting production at Laiva project as it reaches agreement with Pandion Mine Finance
To that end, the company said it planned to raise C$7 million in order to complete the aforementioned technical work and repay its debt to Pandion Mine Finance.
That got a little easier earlier this month, when Nordic announced that it has reached an agreement to settle its C$63.4 million liability for a total consideration of US$24.6 million payable over the following 24 months
To demonstrate its technical bona fides, the company plans to file a NI 43-101 technical report estimating the asset's resource base. The report, already in progress, will be published by Coffey International, a subsidiary of engineering services firm Tetra Tech Inc (NASDAQ:TTEK).
Then, working alongside Tetra Tech, Nordic will design and implement a drilling program to get a clearer picture of the mine’s resources and issue a detailed plan to restart production.
To crystalize the new beginning, the company said it plans to change its name to Otso Gold Corp. Its Finish subsidiary, Nordic Gold OY, will become Otso Gold OY.
Shares zipped up 16.67% to C$0.035 in Toronto.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel