Tag Archives: Laiva

Nordic Gold cuts ties with Tallqvist Oy, puts Laiva on care and maintenance

Nordic Gold has terminated its agreement with mining contractor Tallqvist Oy and decided to place the Laiva gold mine, in Finland, on care and maintenance, months after pouring first gold.

The contractor decision follows continued underperformance, resulting in a shortfall in tonnes and grade to the mill, Nordic Gold said. “Despite written warnings, only slight improvements have been made and the contract with the current mining contractor has now been terminated in order to reduce the outflow of cash,” the company said.

To further conserve cash, the Laiva mine will be placed on care and maintenance while an alternative contractor is engaged and additional financing is found, Nordic Gold said. Care and maintenance is expected to last for around three to four months, according to the company.

Nordic Gold said: “The process of engaging another contractor has begun. A scope of work has been issued and several competitively priced proposals have been received.”

Jett Capital Advisors, of New York, has been engaged to help Nordic secure $35 million in debt financing. This money will be used to restart the mine and mill and replace its current lender, according to the company. The company is currently in discussion with several parties interested in providing this capital.

In addition to replacing the current lender, these funds will provide working capital for ongoing operations and provide funds for drilling to expand the resource.

Since the first gold pour on November 30, Laiva has produced 6,920 oz of gold and received $8.8 million from gold sales.

Laiva rises again; Nordic Gold pours first gold

Nordic Gold has completed the first pour of gold at its wholly-owned Laiva mine, near Raahe in Finland, with 1,234 oz of the yellow metal produced.

On October 11, 2018, Laiva received written approval for start-up and mining started on August 5, 2018. IM visited the mine in August and witnessed some of the developments.

The company acquired Laiva in December for approximately C$25 million ($19 million) in cash and shares.

“Since that time, the company has completed an updated NI-43-101 resource calculation, completed a preliminary economic assessment, recruited an experienced management team to operate the mine, completed all necessary permitting and approvals to operate,” the company said.

“The company has also completed all the necessary plant maintenance and recommissioning.”

Michael Hepworth, President and Chief Executive Officer, said: “The first pour is a critical but vital step in returning Laiva to commercial production. The last 18 months has been focused on using past production data and learning from this information.

“Many fixes have been implemented and as we move towards commercial production further improvements will be implemented to ensure appropriate economics and efficiencies. The team at the mine has done an outstanding job of getting back to production in an incredibly short timeframe. From care and maintenance to production in around 11 months is something everyone can be very proud of.”

A detailed write up of the Laiva operation, which previously operated from 2011 to 2014, was included in the November issue of IM.