Yet another planned rights issue after the previous one was completed just last March announced last week after continued problems getting Laiva gold mine production ramp-up up to speed has caused Nordic Mines (STO: NOMI) to sell off almost 50% during this week. It has now shed three quarters of its market value so far this year. A correction in the price of hold has not helped matters. The fully underwritten rights issue with preferential rights to existing shareholders is subject to an EGM approval, which is to be held on June 15th.
Investors seem to worry about the viability of the entire company. It appears the company is yet to figure out exactly how to extract ore from optimal places concerning the gold veins. Numerous problems with lacking spare parts for faulty components and other operational gaffes have also led to many closures, meaning the 10 kilo per day gold production target is so far only a pipedream. The well publicized waste water issues have also taken a lot of energy and resources.
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