Northland Signs First Offtake Agreement
"Company") is pleased to announce that the Company has entered into a binding
Offtake Agreement with Stemcor for the deliveries of 1 million tonnes of iron
concentrate per year from the Kaunisvaara Iron Project.
The Offtake Agreement is for an initial eight-year period, with the first
delivery of iron concentrate from the Kaunisvaara Project planned for 2H 2012.
The iron concentrate will be sold primarily to the European market, but Stemcor
may also sell to selected global customers.
In addition to the Offtake Agreement, the parties have also signed a Letter of
Intent, whereby Stemcor intends to commit USD 50 million of working capital to
finance the Kaunisvaara Project.
"The Offtake Agreement and the Letter of Intent provide a clear indication of
the strong interest in the Kaunisvaara Project by the global steel industry. We
are pleased to have reached another significant milestone in the development of
the Project," stated Karl-Axel Waplan, Northland's President and Chief Executive
Officer.
Alex Blohm, Stemcor's Director of Special Projects, said: "Stemcor is pleased to
align itself as a partner of Northland on a long-term basis. Northland's
Kaunisvaara Project is particularly attractive due to the high grade iron
content, low level of contaminants and proximity to markets in West, Central and
Eastern Europe. We look forward to working with raw material processors and
steel makers in those regions."
Stemcor is the world's largest independent steel trader, trading some 15 million
tonnes of steel and steel-making raw materials annually. Their business
interests span every step in the steel supply chain including mining, trading,
distribution, stockholding and finance.
Northland is a development-stage mining company with a portfolio of iron
projects in northern Sweden and Finland. Northland's Kaunisvaara Project
contemplates the staged development of 3 magnetite iron ore deposits that would
provide feed to a single, multi-line processing facility in Sweden, producing a
high-grade, high-quality magnetite iron concentrate. The results of the
Feasibility Study on the Kaunisvaara Project will be released this summer.
"Karl-Axel
Waplan" "Alex
Blohm"
President &
CEO Director
of Special Projects
Northland Resources S.A.
Stemcor
For more information, please contact:
Karl-Axel Waplan, President and CEO: 46 705 104 239
Anders Hvide, Executive Chairman: 47 92 88 98 58
Patrick Foster, Director Finance: 44 77 101 236 03
Marguerite Manshreck-Head, Investors Relations, Canada: 1 647 224 7882
Or visit our website: www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1421422]
Unternehmen: Northland Resources S.A. - ISIN: CA6665271061