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Further to the above announcements, the Company is today pleased to announce that it has completed the acquisition of Sydvaranger. As a result of the acquisition, GRANGEX is today the 100% owner of both the
During final negotiations, certain terms in the SPA and the Royalty Agreement have been amended with the key terms presented below.
SPA
The key terms of the SPA are as follows:
- GRANGEX has acquired 100% of the share capital of Sydvaranger via a newly established 100% owned subsidiary company, GRANGEX Sydvaranger AS ("GRANGEX Sydvaranger");
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The consideration paid on closing for 100% of the share capital of Sydvaranger is
US$1,500,000 , of whichUS$1,000,000 is paid in 2023;
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Sydvaranger has
US$25,500,000 of existing debt payable to Orion ("Debt"). The Debt has a maturity on31 December 2025 with Sydvaranger having the right to repay the Debt at any time before maturity. The Debt contains other such commercial terms as are customary for a transaction of this nature; and
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A deferred consideration of
US$13,000,000 which will be paid in cash by GRANGEX Sydvaranger upon a final investment decision ("FID") for the pre-production construction at theSydvaranger Mine . FID is currently expected in early 2026.
Royalty Agreement
The key terms of the Royalty Agreement are as follows:
- An exclusive royalty agreement (the "Royalty Agreement") whereby
Anglo American has paid to GRANGEX SydvarangerUS$17,500,000 in exchange for a 3.00% revenue royalty over the life-of-mine production from theSydvaranger Mine ; - GRANGEX Sydvaranger has the option to buy-back the royalty at any time, and
- The Royalty Agreement contains other such commercial terms as are customary for a transaction of this nature.
Both the Debt and the Royalty Agreement are secured only by the shares of GRANGEX Sydvaranger AS and its assets in Sydvaranger Mining AS.
GRANGEX will establish a technical steering committee, with a representative from
The European and global steel industries are undergoing a fundamental shift away from blast furnace steel making driven by a requirement to reduce CO2 emissions and to reach broader sustainability targets. Ultra-high-grade direct reduction magnetite is at the core of this `green steel revolution' and GRANGEX's shareholders have the ability to participate in this revolution through the re-development of the
As a junior mining company, I am especially proud of the support we have received from
I thank the entire GRANGEX management team as well as our advisors for their hard work and commitment in completing this transaction. My special thanks also to Orion for their constructive cooperation and belief in our capabilities to be a new and responsible custodian of the
Advisors
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GRANGEX is a Swedish mineral development company with the vision to actively contribute to a sustainable society within
The company's share (short name GRANGX) is traded on NGM Nordic SME.
ISIN: SE0018014243
FISN: GRANGEX/SH Instrument ID: 9XX
Legal Entity Identifier (LEI) number: 549300MZ7HL7X6AXMC13.
For more information www.grangex.se/
ISIN code: SE0018014243
Instrument ID: 9XX
Legal Entity Identifier (LEI) number: 549300MZ7HL7X6AXMC13.
https://news.cision.com/grangex-ab--publ-/r/grangex-completes-acquisition-of-sydvaranger-mining-as,c3973655
https://mb.cision.com/Main/15169/3973655/2778798.pdf
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