”The biggest thing that has happened in Swedish mining history”

Grängesberg Exploration Holding AB (publ) (“GRANGEX” or the “Company”) is pleased to announce that the Company, through its wholly owned subsidiary Dannemora Iron AB, has secured a binding term sheet for an offtake agreement (the “Offtake Agreement”) for the entire planned production of low carbon ultra-high-grade magnetite concentrate at the Dannemora mine, with global miner Anglo American. The exclusive Offtake Agreement covers the entire Life of Mine, estimated to 11 years and a production of ~1.0Mt iron ore per year, with an indicative total revenue value of approx. SEK 15 billion, based on today’s price level.

In addition, GRANGEX has secured USD 10 million in a royalty agreement with Anglo American, as a condition for the abovementioned offtake agreement. The commercial terms of the royalty agreement are deemed to be in line with market standards. Through the royalty agreement, GRANGEX has now secured a material portion of its pre-construction financing for the restart of the Dannemora mine.

With production start expected in 2025, GRANGEX expects that it will, through the Dannemora iron ore project become the first green producer of highly enriched magnetite concentrate, meeting the quality requirements for the production of sponge iron, a central component enabling green steelmaking. In addition, the concentrate from the Dannemora iron ore mine is expected to have among the lowest carbon footprints in the industry.

In addition to the funding under the royalty agreement, GRANGEX anticipates that Anglo American may potentially participate in the project financing of the Dannemora mine, subject to Anglo American’s due diligence outcomes and internal approvals. If Anglo American opts not to participate in the future project financing, it will have to relinquish its offtake rights.