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Dear Shareholders and Interested Parties,

Laiva Gold Inc is pleased to announce it has received firm commitments of C$9.6 million (net of fees) for the 50-cent seed round to resume production at our Laiva mine in Central Finland. We intend to upsize our raise to C$12 million and will keep the offering open for another week. We want to thank Reach Markets for their hard work over the last three months and look forward to working together again in the future. We also really appreciate the support from our Pilar Gold shareholders who have used this round as an opportunity to top up their Laiva holding over and above the spin-out shares from Pilar Gold.

LOI signed with cash shell in important milestone towards listing


We are also pleased to announce that we have entered into a non-binding Letter of Intent (“LOI”) with a Canadian Listed Company (“CLC”) with a strong cash position. The terms of the LOI contemplate a reverse takeover of the CLC through the issuance of 22 million Laiva Gold shares. It is anticipated the CLC will have the equivalent of C$10 million net of any liabilities. CLC will agree to adjust the total shares issued and outstanding to 22 million, with an adjustment factor of two shares plus or minus, dependent on the net cash position of C$10 million.


The LOI provides a clear path towards Laiva’s goal of a public listing before year-end, along with a strong capital injection to support the Laiva mine restart and operations.


Click here to access the Laiva Gold seed round subscription form

Laiva mine restart planned for August


The funding puts us in a strong position to resume mining next month to stockpile three months of supply ahead of the mill restart in November. We are in dialogue with the local authorities for the restart of both the mine and mill and are excited to bring employment back to the Raahe district.  

Blast holes ready and prepared for mining this summer in the South Pit

Jim Jackson, Laiva Gold GM during our Investor site visit – June 28, 2023

During our site visit with investors last week, we showed them the extensive work that the previous owners had already completed during their ramp-up period in Q4 2021. Pre-stripping at both the North and South pits on the upper benches was complete, and blast-hole drilling was well advanced before their unexpected closure in December 2021. The above photos are of our GM Jim Jackson standing on the northern side of the South Pit with hundreds of blast holes set for charging.  


We have secured two Ranger DX800 Surface Top Hammer Drill Rigs from Sandvik. The first will arrive at the end of July to work on the South Pit, and the second at the end of August to work on the North Pit. Our strategy is to start slowly and build up the daily production run rate. The first target is to stockpile 300,000 tonnes of mined ore prior to the plant restart anticipated for November. Our initial target is to reach 4,000tpd (tonnes-per-day) by year-end and gradually increase mill throughput towards its design capacity of 6,000tpd by March 2024.

Day 2 of the Laiva Gold investor visit at Sandvik - June 29, 2023.  Special thanks to Victor, Filipe, Christiano, Antti, Juha, Amando, Malcom, Pekka and Herni from Sandvik for hosting us at their Tampere factory 

Mill restart set for November


We want to use this summer to stockpile three months of ore before turning on Europe´s largest gold mill. While we wait, we have some important modifications and repairs to make to this world class facility. First, we are waiting for the arrival of the mill liners from India for our Pebble Mill. Second, we are changing the dimensions of the screens in the CIL tanks to match the same configuration as our PGDM operation in Brazil. This change is to resolve the problem with blocked screens that caused lengthy stoppages in the previous startup. Thirdly, we must replace the rotor concentrate ring in our Knelson Concentrator. Previous operators did not maintain the Knelson, resulting in as much as 40 per cent of the gold going to tailings.

Laiva’s 6,000tpd gold plant in excellent condition and protected from the weather

3Mt low-grade “Mt Everest” stockpile is a very important source of feed


In addition to the two open pits, we will also be sourcing lower-grade ore from a stockpile that sits 500 metres from the ROM pad. This photo was taken from the top of the stockpile that we affectionately call “Mt Everest” to reflect its incredible size that gives us at least 5 years of blending feed for the mill.

Laiva’s 3mt low-grade stockpile that stands 100 metres tall grading 0.3-0.8 g/t

Overall, the visit to Laiva last week confirmed in our mind that we have an exciting gold mine on our hands that has the potential to reach an annualised run rate of 80,000 ounces Au a year. Our mill expert, Ramon Oliveira from our Brazilian PGDM operation, was very impressed with the size and condition of the mill.  He was also joined from Brazil by Israel Oliveira our GM and Rafael Franco our CFO. It was their first visit to Finland.

Tight capital structure upon planned listing in Q4


Following the completion of this C$12 million equity raise, we will have approximately 56 million shares at a valuation of C$0.50 per share. Assuming we complete the reverse takeover (RTO) with the cash shell, the share count will be ~78 million, which implies a market capitalisation of only C$39 million. The replacement cost of Laiva’s mill alone is in excess of $400 million and is blessed with infrastructure that is second to none in Europe.


Our geology team back SRK´s 2014 Resource modelling that shows there are 2 million ounces in their open pit shell design. This is based on the 3,636 holes that were drilled since work started at Laiva in 1950. Importantly only 85,000 ounces of the 2 million ounces have been mined, leaving a long mine life ahead in a rising gold price environment. This is one of the great things about Laiva – everything is already built and pre-stripped, not to mention the extensive exploration and drilling completed since its discovery 73 years ago that is now ready for mining.


This is the final call for our 50-cent seed round. We expect a significant revaluation once operations have resumed and trading in our Laiva Gold shares starts in Q4.


Click here to access the Laiva Gold seed round subscription form

Kind Regards,

Jeremy Gray | CEO
Jeremy.Gray@LaivaGold.com

Jim Jackson | General Manager of Laiva Gold
Jim.Jackson@LaivaGold.com


Charles Chebry | President

Charles.Chebry@LaivaGold.com


Edward Balme | Head of IR

Edward.Balme@LaivaGold.com

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