Northland Pays the Interest to Its Bondholders
LUXEMBURG, LUXEMBURG -- (Marketwired) -- 04/15/13 -- Northland Resources S.A. (OSLO: NAUR)(FRANKFURT: NPK)(OMX: NAURo) - together with its subsidiaries, "Northland" or "the Company") announces that together with the administrator it has agreed to disburse the previously withheld interest on the outstanding bond loans.
The Company's subsidiary Northland Resources AB (publ) (the "Issuer") has three outstanding bonds to a combined amount of USD 370 million. As previously announced the Issuer withheld the interest due on March 6, 2013, under the bond loans due to the ongoing corporate reorganization process.
As part of the short term liquidity funding, announced on March 22, 2013, it was decided by the bondholders and agreed that the Issuer shall pay all outstanding interest payments under the bonds by a withdrawal from the debt service reserve account, DSRA. In total approximately USD 23.6 million has been paid.
The interest payment does not exhaust to short term funding of the USD 16 million from the bondholders. The remaining balance on the DSRA is approximately USD 33 million.
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 produces high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company will 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.
Forward-Looking Information
This announcement may include "forward-looking" information within the meaning of applicable securities laws. This forward-looking information can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. This forward-looking information includes all matters that are expectations concerning, among other things, Northland's ability to meet its continuous disclosure and MCTO obligations, the likelihood of Northland rectify its default under Canadian Securities laws, Northland's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking information involves risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking information is not a guarantee of future performance and that Northland's actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, even if Northland's results of operations, financial condition and liquidity, and the development of the industry in which Northland operates are consistent with the forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
Contacts:
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