Northland Resources S.A.

Northland Resources S.A.

August 08, 2013 08:15 ET

Northland Has Requested for the Reorganizations to Be Terminated

LUXEMBOURG, LUXEMBOURG--(Marketwired - Aug. 8, 2013) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) - ("NRSA" or the "Company" and, together with its subsidiaries, "Northland") announces that the Swedish subsidiaries Northland Recources AB (publ), Northland Sweden AB and Northland Logistics AB today have requested for the company reorganizations of the companies to be terminated.

The request is made due to the fact that the reorganization plan and the composition for the companies, which was approved by the court on the July 12, has entered into force and become legally binding. Thus, the purpose of the company reorganizations has been fulfilled. A decision from the District court to terminate the company reorganizations is expected in two weeks and will then apply with immediate effect.

The Norwegian subsidiary, Northland Logistics AS, is not going through a formal reorganization, but has previously agreed with all of its creditors on a payment plan identical to that of the Swedish subsidiaries. Since the composition of the Swedish subsidiaries has now entered into force, this payment plan is legally binding for the creditors.

"Northland Resources is one the most extensive and complex businesses which has so far been reorganized in Sweden. It is therefore a pleasure to announce that the reorganization has been extremely successful. The success is to a great extent a result of the loyalty and devotion of the employees of Northland Resources, as well as the Pajala region as a whole, who have stood up for the company during the whole reorganization process although the future of the company at times could be in doubt. As a result, the operations of Northland Resources can now continue with maintained job opportunities for the employed staff. In my opinion the reorganization has also been favorable for the creditors whom have not been forced to waive any portion of their claims or rights against the companies, other than by postponing the date of payment," said Lars Söderqvist, the administrator of the companies.

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 expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to 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 S.A.
    Eva Kaijser
    +46 709 320 901

    Northland Resources S.A.
    Jonas Lundstrom
    VP Corporate Communication
    +46 705 493 338

    Northland Resources S.A.
    Petter Brunnberg
    Investor Relations
    +46 727 24 41 09