GRANGEX

On 29 June 2023 Grangex announced the execution of an exclusivity agreement with Orion related to Sydvaranger.  Since that date, Grangex has completed positive due diligence on Sydvaranger and negotiated the final terms of the SPA with Orion.

The acquisition of Sydvaranger, as confirmed in the SPA, will be financed by Grangex in two tranches.  An initial consideration of US$20,000,000 (of which US$1,000,000 has already been paid) will be paid by Grangex by 31 March 2024.  A deferred consideration of US$13,000,000 will be paid by Grangex upon Final Investment Decision (expected in early 2026) to restart operations at Sydvaranger. Grangex will also assume the current care and maintenance costs for Sydvaranger from 1 January 2024. In order to comply with the conditions in the SPA, Grangex will together with its financial advisors commence an immediate process to secure additional financing for the initial consideration, for general working capital purposes and for the continued development of Grangex's existing Dannemora asset.

Sydvaranger together with the existing Dannemora asset, will enable Grangex to become a leading supplier of ultra high-grade magnetite concentrate and to play a strategic role as the global steel sectors seek more sustainable methods of production.

Sydvaranger is a brownfield integrated iron ore asset located in Kirkenes, Sør-Varanger Municipality in Finnmark, in northern Norway. Sydvaranger benefits from significant existing infrastructure as well as a proven track record of iron ore production dating back to 1910.  Grangex intends to finalize a new feasibility study for the production of ultra high-grade magnetite concentrate suitable for Direct Reduction Iron production.

Christer Lindqvist, CEO of Grangex, states: "Grangex is delighted to lead this pioneering Nordic cooperation in one of Norway's most important regions at a crucial time in Europe's quest for self-reliance in the minerals space. Being well on our way to successfully developing the Dannemora project, we will now proceed with the same speed, energy, and enthusiasm to start environmentally sustainable and commercially sound iron ore production at Sydvaranger. We look forward to re-establishing industrial mining activity in East Finnmark together with all public and private stakeholders.  I thank Orion for their trust in Grangex's abilities to secure the future of Sydvaranger."