Copperstone completes a directed share issue and receives proceeds of SEK 147.9 million

This press release may not be made public, published or distributed, directly and indirectly, within or to the United States, Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa or any other jurisdiction where such action would be unlawful or subject to legal restrictions.

Press release

Kiruna 1 February 2022

Copperstone Resources AB (publ) (“Copperstone” or the “Company”) has successfully completed a directed share issue of 136,955,201 shares, at an offer price of SEK 1,08 per share, raising gross proceeds of SEK 147.9 million (the “Directed Share Issue”). The subscription price in the Directed Share Issue has been determined through an accelerated book building procedure performed by Arctic Securities AS, filial Sverige. The subscription interest exceeded expectations and the Board has therefore decided to increase the previously estimated size of the Directed Share Issue. The Directed Share Issue was subscribed for by institutional and qualified investors, including Santhe Dahl Invest AB, Skandinavkonsult i Stockholm AB, and RoosGruppen AB. Approximately 70 percent of the Directed Share Issue was subscribed by new investors.

The Board of Copperstone has, based on the authorisation, which was obtained at the AGM on 19 May 2021, resolved on a directed share issue with deviation from the existing shareholders’ preferential rights of up to 136,955,201 shares to a subscription price of SEK 1.08 per share. The Company will thereby receive proceeds of approximately SEK 147.9 million before transaction costs.

The subscription price in the Directed Share Issue amounted to SEK 1.08 per share, corresponding to a discount of approximately 11.5 percent in relation to the volume-weighted average price on the issue day. It corresponds to a discount of approximately 9.6 percent in relation to the volume-weighted average price on Nasdaq First North Growth Market during the last 30 trading days.

Jörgen Olsson, Chairman of the Board, comments:

“We appreciate the strong interest from institutional and qualified investors that has further strengthened our financial position. We thereby further improve the prerequisites for the reopening of the Viscaria mine in Kiruna. We are in the final phase of completing our environmental permit application, which is an important milestone for the Company. The solid balance sheet will further strengthen the position in our dialogues with various stakeholders and contractors, dialogues of which will be intensified during the year.”

The Company intends to use the net proceeds from the Directed Share Issue to further accelerate investments for an expedient re-opening of the Viscaria mine in Kiruna. A prioritized investment area will be continued core drillings in order to secure and increase the mineral resources.

The subscription price in the Directed Share Issue was determined through an accelerated book building procedure led by Arctic Securities AS, filial Sverige. The Board assesses that the subscription price in the Directed Share Issue fairly reflects the current volatile market conditions, taking discount into account. Furthermore, the Board has resolved to deviate from the shareholders’ preferential rights mainly to procure capital in a time and cost-effective manner prior to the forthcoming submission of the Company’s environmental application in March 2022 and diversify the ownership base. The overall assessment of the Board is that the reasons for carrying out the Directed Share Issue in this way outweigh a preferential rights issue for existing shareholders, and that the Directed Share Issue deviating from the shareholders ‘preferential rights is therefore considered to be in the Company’s and all shareholders’ interests.

The Directed Share Issue was subscribed for by institutional and qualified investors, including Santhe Dahl Invest AB, Skandinavkonsult i Stockholm AB, and RoosGruppen AB. Approximately 70 percent of the Directed Share Issue was subscribed by new investors for the Company.

The Directed Share Issue entails that the number of outstanding shares in Copperstone increases from 1,117,018,694 shares to 1,253,973,895 shares. The Company’s share capital increases from SEK 111,701,869.40 to SEK 125,397,389.50. The Directed Share Issue entails a dilution of approximately 10.9 percent in relation to the total amount of outstanding shares and votes in the Company after the Directed Share Issue.

Copperstone Resources’ report for the fourth quarter of 2021 will be released on March 4, 2022.

Advisors
Arctic Securities AS, filial Sverige is financial advisor and Hannes Snellman Advokatbyrå AB is legal advisor to Copperstone.

For further information, please contact
CEO Anna Tyni on +46 (0) 70 – 561 46 11
E-mail: anna.tyni@copperstone.se

Chairman of the board Jörgen Olsson on +46 (0) 703 – 420 570
E-mail: jorgen.olsson@deciso.se

Info@copperstone.se or www.copperstone.se

This press release includes inside information which Copperstone Resources AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact persons set out above, 1 February 2022 at 01:15 CET.

Important Information
This press release does not constitute an offer to, or an invitation to, acquire or subscribe for any securities in Copperstone Resources AB (publ) in any jurisdiction, neither from Copperstone Resources AB (publ), Arctic Securities AS, filial Sverige or anyone else. Copies of this press release will not be produced and may not be distributed or sent to the United States, Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa or any other jurisdiction where such distribution would be illegal or require registration or other action. The recipient of this press release is responsible for using this press release and the information herein in accordance with applicable rules in each jurisdiction.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation“) and has not been approved by any regulatory authority in any jurisdiction. Copperstone has not authorized any offer to the public of shares or other securities in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed Issue. In any EEA Member State, this communication is only addressed to and is directed at qualified investors and corresponding investors in that Member State within the meaning of the Prospectus Regulation.

This press release and the information contained in the press release may not be distributed in or to the United States. This press release does not constitute an offer to acquire securities in the United States. Securities referred to herein have not been registered and will not be registered in accordance with the US Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the United States without being registered, subject to an exception to, or refers to a transaction that is not subject to registration under the Securities Act. No offer will be made to the public in the United States to acquire the securities mentioned here.

Om Copperstone
Copperstone Resources AB is a company now scaling up to become a modern and responsibly producing mining company through the reopening of the Viscaria mine in Kiruna, Sweden. The deposit’s high copper grade assessed mineral resources, geographical location and growing team of experts provides good opportunities to become a key supplier of quality and responsibly produced copper – a metal that plays a critical role in Sweden’s and Europe’s climate change towards an electrified society. In addition to the Viscaria mine, Copperstone holds a number of other exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. The parent company’s shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company’s Certified Adviser, info@augment.se, +46 8 604 22 55.

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