LUXEMBOURG, LUXEMBOURG--(Marketwired - Jan. 31, 2014) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) - (together with its subsidiaries "Northland", "NRSA" or the "Company") announces that it has signed a leasing arrangement for mobile mine equipment with a major Scandinavian bank for a total amount of USD 25 million.
The Company has today signed an arrangement with a major Scandinavian bank for a leasing facility of mobile mine equipment delivered during 2013 and 2014, for a total amount of USD 25 million ("the Lease"). As a prerequisite for signing this leasing arrangement, the agreement with Caterpillar Financial Nordic Services AB (described in the Investor Presentation dated May 30, 2013) has been renegotiated and downsized to enable the Company to have two lease providers instead of one for its mobile mine equipment.
It should be noted that the Lease does not affect the Company's financing target of up to USD 150 million (as described in the press release dated November 14, 2013), since the Lease was already accounted for in the assumptions underlying this target.
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.
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.