The Laiva gold mine, in Finland, has been placed on care and maintenance until an alternative mining contractor has been engaged and additional financing has been found, TSX-V-listed Nordic Gold announced over the weekend.
The mine, which has failed to improve tonnes and mill grades, is expected to be on care and maintenance for between three and four months.
Nordic reported that it had terminated its contract with the mining contractor to reduce the outflow of cash.
In terms of financing, Jett Capital Advisors has been engaged to help secure $35-million in debt financing, which the junior would use to restart the mine and mill, replacing its current lender.
Nordic was in discussion with several parties, it reported.
In addition to replacing the current lender, these funds would provide working capital for ongoing operations and provide funds for drilling to expand the resource at Laiva mine, where nearby, Nordic owns close to 4 295 ha of highly prospective, but underexplored, explorational property.
The area permitted for mining covers a further 1 694 ha, much of which is also underexplored, the company said.
Since its first pour in November 2018, the mine has produced 6 920 oz of gold and has received $8.8-million from gold sales.