Northland Finalizes the Sale of its Non-Ferrous Assets in Sweden
LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 05/02/11 -- Northland Resources S.A. (TSX: NAU)(OSLO: NAUR)(FRANKFURT: NPK) - ('Northland' or 'the Company') is pleased to announce that the divestment of the Company's non-ferrous projects in Sweden has been approved by the TSX Venture Exchange. As previously announced, the buyer of the projects, including the Barsele Gold Project, is Orex Minerals Inc. (TSX VENTURE: REX) - ('Orex').
'We are convinced that these projects will be better developed by Orex, a company with a proven record and focus on the exploration and development of gold and silver projects,' said Karl-Axel Waplan, President and Chief Executive Officer of Northland. 'Orex will invest a minimum of USD 3 million in the non-ferrous projects in the two first years. Furthermore, Northland will be working close together with Orex. I am pleased to announce the appointment of Dr. Vladimir (Mirek) Benes to the Orex Board of Directors. Dr. Benes is Vice President of Exploration for Northland and he will bring to the exploration and potential development of these projects his experience from Barrick Gold Corporation, where he ran the exploration team operating in Russia and Central Asia for 10 years.'
The total consideration is valued at a minimum of USD 15.5 million including a mix of upfront cash and shares, as well as deferred cash and share payments, guaranteed investments and a two percent Net Smelter Royalty. Northland will receive a total of USD 5 million in cash over two years and USD 3.5 million of Orex shares to be issued over a period of four years. Initial consideration of USD 2 million and 1,153,997 shares was received by Northland on April 29, 2011.
Additional information about the divestment was published on October 27, 2010 and on March 22, 2011.
Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will exploit magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process yields a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Ore Copper Gold Project in northern Finland.
Karl-Axel Waplan, President and CEO
Northland Resources S.A.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
46 705 104 239
Northland Resources S.A.
Marguerite Manshreck-Head
Investors Relations
Canada: 1 647 224 7882
Northland Resources S.A.
Anders Antonsson
Vice President
Investor Relations: 46 709 994 970
www.northland.eu