Thursday this week, the Swedish mineral company Grangex announced that it has signed a conditional purchase agreement with OMF Fund II H Ltd (Orion) for the purchase of 100 percent of the share capital and shareholder loans in Sydvaranger Mining AS from Orion.
The total purchase price is 33 million dollars.
Sydvaranger owns the iron ore mine in Kirkenes in Sør-Varanger municipality, Eastern Finnmark. Grangex intends to resume production of ultra-high-enriched iron ore concentrate suitable for fossil-free steel production, according to a press release from the company.
This summer it was revealed that Grangex had entered into an exclusivity agreement with Orion related to the acquisition of Sydvaranger. Since then, Grangex has carried out investigations and negotiated the final terms of the purchase agreement with Orion.
The Swedish mineral company also operates the Dannemora mine in Sweden. According to Grangex, this project, together with Sydvaranger, will enable the company to become a leading supplier of high-quality magnetite concentrates, and play a strategic role when global steel producers seek more sustainable production methods.
“Grangex is pleased to lead this ground-breaking Nordic cooperation in one of Norway’s most important regions, at a crucial time in Europe’s search for self-sufficiency in minerals. Well on the way to a successful development of the Dannemora project, we will now proceed with the same speed, energy and enthusiasm to start the development of sustainable and commercially good iron ore production in Sydvaranger. We look forward to re-establishing industrial mining in Eastern Finnmark together with all public and private stakeholders,” says CEO of Grangex, Christer Lindqvist.
Source: High North News