Northland Resources S.A.

Northland Resources S.A.

June 10, 2013 09:37 ET

Changes in Northland Resources Corporate Management

LUXEMBOURG, LUXEMBOURG--(Marketwired - June 10, 2013) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) (together with its subsidiaries, "Northland" or "the Company") announces the resignation of CEO Karl-Axel Waplan. The board of directors has appointed Peter Pernlöf as Acting CEO.

Following discussions with Northland's current board and representatives of the proposed board, presented in a press release issued on May 31st, CEO Karl-Axel Waplan tendered his resignation today. Peter Pernlöf will serve as Acting CEO pending the board's appointment of a new MD. Mr Pernlöf, who has been with the company since 2010, is currently Northland's COO.

- The loyalty and confidence in the future that has been demonstrated by everyone at Northland during the past few months has been absolutely fantastic. Tremendous efforts have been made, and we would never have succeeded without them. During the intensive, complex rescue work, full focus has naturally been on securing long-term financing and ensuring the company's survival. Now, when our future is assured, I can express my deep regret that Northland ended up in such a pressed situation and, in hindsight, there are certainly things we could have done differently. But I am very confident that the company's future is now assured and that we have found investors who can develop Northland in the ideal way, said Karl-Axel Waplan, outgoing President and CEO of Northland Resources.

- Northland Resources has been in an extremely tough situation for a long time. In making its assessment, the board of directors agrees with Mr Waplan that the company needs a calm environment to focus on the next phase - the completion of the Kaunisvaara project - with a new CEO. We would like to emphasize that we value Karl-Axel's great importance to the company. He took the Kaunisvaara mine from exploration to production in record time and in accordance with established schedules, an effort that in itself deserves notice, said Matti Kinnunen, chairman of the board of Northland Resources.

Matti Kinnunen, Chairman of the Board of Directors, 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.

Contact Information

  • Northland Resources SA
    Matti Kinnunen
    +46 70 876 85 92

    Northland Sweden AB and Northland Resources AB
    Olav Fjell
    +47 975 79 305