Nordic Mining ASA: Update on financial situation
Oslo, 20 October 2026
Reference is made to the previous stock exchange announcements regarding Nordic Mining ASA (the "Company") and Engebø Rutile and Garnet AS' ("ERG") financial situation, including the announcement on 10 September 2026 regarding the summons for a bondholder meeting, the announcement on 22 September 2026 regarding the need for a comprehensive financial restructuring, the announcement by the Company on 13 October 2026 regarding the minutes from the extraordinary general meeting passing resolutions that could facilitate solutions for the Company's liquidity needs, and the announcement on 15 October 2026 regarding the status of ongoing negotiations with creditors.
With reference to the announcement on 10 September 2026, ERG, as issuer under its 12.5% Senior Secured Bonds (ISIN: NO0012734112), obtained an extension to 15 October 2026 of (i) the temporary suspension of the minimum liquidity covenant, (ii) the waiver expiry date applicable to the minimum book equity ratio covenant, and (iii) the deferral of the cash interest payment under the bond terms. As announced on 15 October 2026, the Company and ERG had not at that time obtained new waivers or extensions, but continued to negotiate with their creditors in good faith with a view to resolving their financial situation.
The Company and ERG are now in the process of requesting a summons for a Written Resolution of the bondholders (the "Summons"). Through the Summons, ERG is seeking the bondholders' approval of, among other matters, (i) certain waivers to permit ERG to issue a new, separate series of short-term super senior bonds to fund its immediate working capital requirements in the amount of USD 3 million, with a further USD 3 million available as a tap option subject to the consent of the providers of the new money, funded in equal parts by a third -party investor and existing bondholders (the "Funding"), (ii) the elevation of a portion of the existing bonds, equal to the cash provided under the September 2026 tap issue and minority tranche (approximately USD 7.7 million), to the new super senior bonds, ranking behind the Funding but ahead of the existing bonds, (iii) a further extension of the waiver expiry date applicable to the minimum liquidity and minimum book equity ratio covenants, and (iv) a further deferral of the cash interest payment previously due under the bond terms, and a deferral of the cash interest payment scheduled for 9 November 2026 (together, the "Proposed Matters"). The super senior bonds will bear interest at 17.5% per annum, payable in kind at maturity, and will mature one week after the last drawdown of the Funding. No payments will be made on the existing bonds or under the royalty facility until the super senior bonds have been repaid. Further details are set out in the Summons, which will be published on the Bond Trustee's website/www.stamdata.com.
The Proposed Matters are premised on negotiations for a long-term solution continuing, and on an agreed split between the bondholders and the royalty facility provider of the consideration received under any such solution that compromises their claims, which remains subject to agreement with the royalty facility provider.
The Company and ERG have been informed that bondholders representing more than two-thirds of the voting bonds have indicated their support for the Proposed Matters, however the Proposed Matters are subject to further consent from the royalty facility provider, including to the priority of the super senior bonds. The Company and ERG have also received indicative commitments for the Funding.
The Company and ERG believe that approval of the Proposed Matters would represent a positive and constructive step in the parties' ongoing efforts to resolve ERG's long term financial situation. However, the outcome of the bondholders' vote has not yet been determined, no binding resolution has been passed, and there can be no assurance that the Proposed Matters will be approved, or that a comprehensive and final solution to the Company's and ERG's financial situation will be achieved, on these or any other terms.
ERG's liquidity position is critical. ERG has initiated measures in dialogue with its suppliers to reduce its cash outlay in anticipation of a longer-term solution. ERG is in discussions with industrial parties in respect of a longer -term solution. These parties are conducting due diligence, none has made a binding commitment, and there is no certainty that any longer-term solution will be agreed.
Further information regarding the Company's and ERG's financial situation, including the outcome of the process described above, will be provided when available.
For further information, please contact:
Tord Meling, CFO
Tel: +47 99 09 87 66
tord.meling@nordicmining.com
or visit: https://nordicmining.com/
This information is considered to include inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Tord Meling, on 20 October 2026, at 20:53 (CEST).