Engebø Rutile and Garnet AS; Tap issue of existing bond

04 Mar 2025 09:30 CET

Engebø Rutile and Garnet AS ("ERG") has today sent out notice for bondholders
meeting for proposed tap issue of USD 33 million to the Engebø Rutile and Garnet
AS 12.5% Senior Secured 100,000,000 Bonds 2022/2027 with ISIN NO0012734112
("Proposal").

ERG has received an inquiry from investors to potentially tap the existing bond
with USD 20-25 million. The company and the manager have evaluated and
considered the opportunity to strengthen the liquidity in ERG so it can carry
out the production ramp-up in an optimal way and at the same time obtain a
liquidity buffer in case of any unforeseen events. Following discussions the tap
has been upsized to USD 33 million due to interest from existing international
holders of the existing bond, priced at 101.00% of par.

A majority of the existing holders supports the proposed tap issue to positively
mitigate any deference of revenue. Bondholders holding in aggregate
approximately 82% of the total outstanding principal amount of the bonds have
indicated their support of the Proposal.

“It is great to see the support the project and the company get from the
bondholders. An upsized tap issue placed above par allows us to continue our
production ramp-up”, comments Nordic Mining's CEO Finn Ivar Marum.

Further information on ERG's contemplated tap issue is given in the enclosed
notice for bondholders meeting.

Clarksons Securities acts as Manager and Bookrunner for the transaction.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Oslo, 4 March 2025
Engebø Rutile and Garnet AS

More information:
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640324_ERG Notice of Written Resolution.pdf