LUXEMBOURG, LUXEMBOURG--(Marketwired - June 28, 2013) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) (together with its subsidiaries "Northland", "NRSA" or the "Company") has always done the bulk of its business in Norrbotten. An unanimous board of directors have this Monday decided to base the CEO in Luleå. The board also mandated to the acting CEO to review relocating certain group functions to Luleå.
"The board has concluded that Northland will make its new start based in Norrbotten. During the difficult financing process, Northland's local business operation and organization operated well. It is therefore natural to build on that strength by relocating more group functions and the CEO's office to Luleå," said Olav Fjell, Chairman of the Board of Northland Resources AB and proposed Chairman of the group's parent company, Northland Resources S.A.
The Stockholm office has been based around CEO, CFO, Investor Relations and other supporting staff. In view of the fact that the company is now entering a more operational phase, with main focus on the continuous operation of the Kaunisvaara mine, it is natural to base most of these functions in Luleå. The Stockholm office at Hovslagargatan will therefore be closed as of October 1st 2013, making Northland the first listed company in modern times with CEO and most of its management team in Norrbotten. Eva Kaijser remains as CFO of Northland and her position is not affected by today's announcement.
"The consolidation to Norrbotten is a logical step. Northland has entered a phase where the focus is on production and operation. Northland has always been based and rooted in our area. Norrbotten is where the ore is, and nearly all of our employees work here," said Peter Pernlöf, acting CEO of Northland Resources.
The board also decided that Northland's exploration work will be concentrated in the Kaunisvaara area. Other exploration activities in Sweden and Finland will be minimized. The DFS for Hannukainen will be presented as scheduled during end of 2013.
"With my background in the primary industry, I am convinced that it's best for a company like Northland to have its top management as close as possible to the operational business. Alltogether, this demonstrates how strongly rooted we are in Norrbotten," said Peter Pernlöf.
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.
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.