Nordic Business Report-November 20, 2006-Nordic Mining ASA intends to acquire Rana Gruber AS (C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com Norwegian mining company Nordic Mining ASA said on Monday (20 November) that the board of directors of Rana Gruber AS and Nordic Mining ASA have entered into a Letter of Intent whereby Nordic Mining will put forward an offer to the shareholders of Rana Gruber for all the shares in the company. The parties have agreed on a value of Rana Gruber consisting partly of a fixed amount of NOK95m and a variable amount based on the results for Rana Gruber in 2007 and 2008. The fixed amount shall be adjusted accordingly if any dividends are distributed before the transaction takes place. The final terms and conditions for an offer will be established subsequent to the completion of the due diligence. Rana Gruber AS is carrying out mining and beneficiation of iron ore from its own ore deposits located in the Dunderland valley, north of Mo i Rana in Nordland, Norway. In 2005 Rana Gruber had a sales income of NOK195m and a profit after tax of NOK24m. Nordic Mining ASA was incorporated on 8 May 2006 through the de-merger of Rocksources business within exploration of metals and minerals. Nordic Mining is registered on the Oslo OTC with ticker code NOMI. One British pound (GBP) is worth approximately 12.21 Norwegian kroner (NOK). ((Comments on this story may be sent to [email protected]))