Sweden-based mining and exploration company Dannemora Mineral has announced that it filed for bankrputcy at Uppsala District Court on March 18. Dannemora recently decided to cease all iron ore production until its liquidity situation has been assessed.
In January this year, the company had resumed limited drilling activities in Sweden to be able to maintain future production at its mine, after halting normal activities of drilling and construction of tunnels for future mining in September last year amid measures related to financing difficulties.
"The Dannemora mine is operational, supplying in-demand products to demanding customers. We have developed cost-effective solutions to our well-defined technical problems. However, we have been unable to procure the necessary financing for the necessary investments within the requisite time. I am very proud of all of our employees and it feels very dispiriting that we were unable to give them more time to turn things around," commented chairman of the board Lennart Falk, who founded the company in 2005.
Due to the bankruptcy, the company has requested a suspension of all trading in its shares and bonds.