Mahvie Minerals decides on a private placement with EMX

Mahvie Minerals decides on directed share issue and finalizes financial commitment to EMX

Styrelsen i Mahvie Minerals AB (publ) ("Mahvie Minerals" eller "Bolaget") har idag, med stöd av bemyndigande från extra bolagsstämman den 18 oktober 2023, beslutat om en riktad emission om 1 785 516 aktier ("Utspädningsemissionen") till EMX Scandinavia AB ("EMX Scandinavia") i enlighet med av Bolaget ingånget aktieöverlåtelseavtal. Teckningskursen i Utspädningsemissionen uppgår till 0,40 SEK per aktie och är densamma som i den tidigare riktade emissionen. I och med Utspädningsemissionen kommer Bolaget att ha uppfyllt sitt finansieringsåtagande gentemot EMX Scandinavia.

The board of directors of Mahvie Minerals AB (publ) (“Mahvie Minerals” or the “Company”) has today, based on the authorization from the extraordinary general meeting on October 18, 2023, resolved on a directed issue of 1,785,516 shares (the “Dilution Issue”) to EMX Scandinavia AB (“EMX Scandinavia”) in accordance with a share transfer agreement entered into by the Company. The subscription price in the Dilution Issue amounts to SEK 0.40 per share and is the same as in the previous directed issue. With the Dilution Issue, the Company will have fulfilled its financing commitment to EMX Scandinavia.

On February 12, 2022, the Company entered into an agreement (the “Share Purchase Agreement”) with EMX Scandinavia regarding the acquisition of the current subsidiary Mo i Rana VMS AS. The share purchase agreement included a right and obligation for EMX Scandinavia to convert parts of an outstanding promissory note (the “Promissory Note”) into shares in the Company to maintain its 9.9 percent ownership in the Company until the Company has raised a total of SEK 25.0 million in capital (the “Dilution Protection”).

In light of the Share Purchase Agreement and as a result of the directed new share issue of SEK 6.5 million resolved by the board of directors on 29 September 2023, which was approved by the extraordinary general meeting of the Company on 18 October 2023 (the “Directed New Share Issue”), the board of directors of Mahvie Minerals has today, based on the authorization from the extraordinary general meeting on 18 October 2023, resolved on the Dilution Issue.

The dilution issue is directed to EMX Scandinavia and comprises a maximum of 1,785,516 shares at a subscription price of SEK 0.40 per share, i.e. SEK 0.40 per share. corresponding to a value of SEK 714,206.40. The subscription price corresponds to the subscription price in the Directed New Share Issue. Payment for subscribed shares in the Dilution Issue is made through set-off of the claim. The reason for the deviation from the shareholders’ preferential rights in the Dilution Issue is to fulfill the Company’s obligations towards EMX Scandinavia as a result of the Share Transfer Agreement.

The Dilution Issue increases the number of shares in Mahvie Minerals by 1,785,516 shares, from 38,817,965 shares (taking into account the Directed New Share Issue) to 40,603,481 shares. The share capital thereby increases by approximately SEK 89,275.80 from approximately SEK 1,940,898.36 (taking into account the Directed New Share Issue) to approximately SEK 2,030,174.16. The Dilution Issue entails a dilution of approximately 4.4 percent in relation to the total number of outstanding shares and votes in the Company after the Dilution Issue and taking into account the Directed Issue.

Through the Directed New Issue, the Company has raised a total of just over SEK 25 million in capital, which was the financing commitment that the Company undertook under the terms of the Share Purchase Agreement. Upon completion of the Dilution Issue, EMX Scandinavia’s Dilution Protection will also cease according to the terms of the Share Purchase Agreement. The remaining part of EMX Scandinavia’s claim against the Company of SEK 4,404,068.05 under the Promissory Note has today been waived by EMX Scandinavia and contributed in full as an unconditional shareholder contribution to the Company.

Mahvie Minerals CEO Per Storm comments: “It is very satisfactory that the Company has fulfilled its financial commitment to EMX. It indicates a confidence in the Company and the projects and it also indicates a change in attitude towards exploration and mining development, which we perceive as positive. We also look forward to continuing our excellent cooperation with EMX to strengthen and develop the Mo i Rana project in particular.”