Northland Confirms Short Term Funding-Secures Operations in Kaunisvaara
LUXEMBURG, LUXEMBURG -- (Marketwire) -- 03/22/13 -- Northland Resources S.A. (OSE: NAUR)(FRANKFURT: NPK)(OMX: NAURo) (together with its subsidiaries, "Northland" or "the Company") announces that the Company has received approval from key stakeholders for short term financing amounting to USD 20 million.
On March 8, 2013, the Company announced that it anticipated receiving approval from its bond-holders and major suppliers for additional short term funding to maintain the Company's current operations. These stakeholders have today agreed to provide short term financing totaling USD 20 million, of which USD 10 million comes from the debt service account of the bond trustee, with an additional USD 10 million being provided as a bridge facility by major suppliers. The short term financing will be disbursed at defined milestones during the period up until mid-April 2013.
The funding received is expected to allow the Company to continue its operations at the present level. This will enable the company to continue its work on the logistics chain as scheduled. The Company believes it will realistically be able to resolve its long term financing solution during April 2013.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern Finland and for the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
+46 705 104 239
Northland Resources S.A.
Eva Kaijser
CFO
+46 709 320 901
Northland Resources S.A.
Anders Antonsson
Vice President - Investor Relations
+46 709 994 970
www.northland.eu