Northland Resources S.A.

Northland Resources S.A.

August 27, 2013 03:15 ET

Northland Resources S.A.: Notice of Reduction of Share Capital and Cancellation of Shares in Connection With Reverse Stock Split

LUXEMBOURG, LUXEMBOURG--(Marketwired - Aug. 27, 2013) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) (Northland or the "Company") announces reduction of share capital and cancellation of shares in connection with reverse stock split.

Reference is made to the resolution passed at the Company's extraordinary general meeting on July 31, 2013 and the announcement on August 14, 2013 regarding implementation of a reverse stock split by exchanging 100 existing shares against 1 new share in the Company.

The last day of trading on an unconsolidated basis was August 16, 2013, and the Company's shares were traded on a consolidated basis reflecting the reverse stock split (100:1) from and including August 19, 2013.

As a result of the cancellation of fractional interests in shares in the Company resulting from the reverse stock split, the Company's share capital has been reduced by CAD 4.13 through a cancellation of 413 shares in the Company. The Company's registered share capital is now set at CAD 51,413.76 and the total number of issued shares in the Company is 5,141,376.

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This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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 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 Lundström
    SVP Corporate Communication
    +46 705 493 338

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