Northland Resources S.A.

Northland Resources S.A.

December 21, 2012 08:30 ET

Northland Has Closed the USD 20 Million Bond Loan

LUXEMBOURG, LUXEMBOURG--(Marketwire - Dec. 21, 2012) - Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) ("Northland" or the "Company") is pleased to confirm that its wholly owned subsidiary Northland Resources AB has closed a USD 20 million bond loan.

As previously announced, Northland Resources AB, had successfully completed subscription of a senior secured bond of USD 20 million. The bond has a 12.25% interest coupon and matures February 26, 2016.

The proceeds from the new bond will finance Capex investments for Kaunisvaara as well as working capital.

SpareBank 1 Markets AS acted as Sole Manager of the bond loan.

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 will produce 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.

Contact Information

  • Northland Resources S.A.
    Karl-Axel Waplan
    President and CEO
    +46 705 104 239

    Northland Resources S.A.
    Peder Zetterberg
    Acting CFO
    +46 708 652 120

    Northland Resources S.A.
    Anders Antonsson
    Vice President - Investor Relations
    +46 709 994 970