Finland-focused junior miner Nordic has entered into an agreement to settle the debts it owes to Pandion Mine Finance, paving the way to return the idled Laiva gold mine to production.
The mine was placed on care-and-maintenance in February, after Nordic terminated its contract with its underperforming mining contractor.
During the care-and-maintenance period, Pandion has continued to fund Nordic to maintain the site and pay down liabilities.
TSX-V-listed Nordic announced this week that it had entered into an agreement to settle the outstanding C$63.4-million in liability, plus the $5-million in care-and-maintenance cost owed to Pandion for a total consideration of $24.56-million, payable over the next 24 months.
The agreement includes Pandion providing an additional $900 00 to Nordic for working capital purposes.
Nordic said that Pandion had further demonstrated its support by agreeing to receive the first tranche of funds by participating in future capital raises. Accordingly, Nordic would only make a cash payment to Pandion in 18 months, which would allow it to get into production before any payment was due.
Since the first pour on November 30, 2018, until entering care-and-maintenance in March 2019, Laiva produced 6 920 oz of gold and received $8.8-million from gold sales.