June 9th, 2011
Grängesberg Iron AB and Scandinavian Resources Ltd has signed an agreement regarding the transfer of nine iron exploration permits in northern Sweden from Grängesberg Iron AB to Kiruna Iron AB, a subsidiary to Australian mining company Scandinavian Resources Ltd. Among the permits are the high potential exploration targets of Ekströmsberg, Tjårrojokka and Pattok.
The agreement comprises for Grängesberg Iron AB to receive a cash component of USD 2 million payment, a Net Smelter Return (NSR) component of 1% and issue of 8.2 million fully paid ordinary shares in Scandinavian Resources Ltd. “The sale of the permits provides excellent possibilities for Grängesberg Iron to focus on reopening the historic Grängesberg iron ore mine in the south-central of Sweden”, says Gösta Bergman, Chairman of the Board of Directors of Grängesberg Iron. “The agreement also further improves the conditions for completing an IPO during 2011”.