* Talvivaara hit by waste water leaks
* Rights issue oversubscribed, underwriting not used
* Finnish state investment firm Solidium is biggest owner
(Adds Solidium comment, background on Sotkamo mine)
HELSINKI, April 15 Finnish mining company
Talvivaara said it succeeded in raising 261
million euros ($341.85 million) in a rights issue to keep its
mine running, securing a chance to recover from its costly waste
Talvivaara's Sotkamo mine, once hailed as a pioneer in a
nickel extraction process called bioheapleaching, has been hit
by a series of problems including a November accident in which
toxic waste leaked into nearby waters and halted production for
There were concerns some investors could back out of the
rights issue after a new leak was discovered a week ago,
particularly after pension insurance firm Ilmarinen cancelled
its subscription and sold off its 5.08 percent
But Talvivaara said on Monday that the rights issue was
oversubscribed and banks' underwriting was not used.
Finland's state investment fund Solidium boosted its stake
to 16.7 percent from a previous 8.9 percent to become the
miner's top shareholder. It invested 47 million euros in the
"Talvivaara has faced significant problems in its operation,
but we continue to support the company while it aims to solve
its problems and we continue to believe in the company,"
Solidium's Managing Director Kari Jarvinen said in a statement.
While the rights issue diluted the value of existing shares,
it was considered crucial to ensure the company could roll over
debt maturing in May.
Shares in Talvivaara were down around 2 percent in Helsinki
and London bourses and were trading at 0.16 euros and 0.14
pounds by 1315 GMT.
($1 = 0.7635 euros)
(Reporting by Terhi Kinnunen; Editing by Ritsuko Ando)