Nordic Gold Inc. will shut down its recently restarted Laiva gold mine in Finland for between three and four months amid liquidity and operational issues, according to a March 8 release.
In February, Nordic Gold flagged problems at Laiva, with a working capital deficit from the start of operations in November 2018 still increasing due to a shortfall in tonnes and grade to the mill.
The company admitted that the mine had a high risk of failing both in the economic and technical aspects, as it was placed into production without the benefit of a feasibility study.
To cut costs, Nordic Gold decided to dismiss its mining contractor, which only made slight improvements despite written warnings.
While the mine is under care and maintenance, the company said it will search for a new contractor and seek C$35 million in priced debt financing, which will be used to restart the mine and mill, fund a drill program, provide working capital for ongoing operations and replace its current lender.
Jett Capital Advisors LLC of New York was hired to help Nordic Gold secure the capital.
Since its first gold pour in November 2018, Laiva has produced 6,920 ounces of gold, generating C$8.8 million in revenue.
The company also announced the resignation of Ernest Cleave as a director.