Stocks & Investing
Stocks and Investing
Stocks and Investing
Mon, July 2, 2012 
July 02, 2012 07:00 ET
Northland Drawing Down on Bond Facility
LUXEMBOURG, LUXEMBOURG--(Marketwire - July 2, 2012) -Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NPK) - ("Northland" or "the Company") announces the first drawdown of approximately USD 155 million from its USD 350 million Bond Loan Facility.
The Bond Trustee ("Norsk Tillitsmann") has, based on a report from the independent consultant Turgis Consulting Ltd ("Turgis"), allowed Northland to draw down its Bond Loan Facility that was completed in March 2012. Turgis is required, according to the bond agreement, to check if the Kaunisvaara Project passes a defined "cost-to-complete" test as well as to certify that the project is progressing according to schedule.
"The proceeds will be used to further progress our Kaunisvaara Project", said Peder Zetterberg, Acting CFO of Northland Resources S.A. "We expect to make the second drawdown at the end of August 2012 to ensure that the production of high quality iron ore concentrate will commence in the fourth quarter of this year."
The Senior Secured Bond issue 2017 is traded on Oslo Børs under the ticker NORES01 for the NOK 460,000,000 tranche and under ticker NORES02 for the USD 270,000,000 tranche. The final maturity date for both tranches is March 6, 2017.
Karl-Axel Waplan, President & CEO
Northland Resources S.A.
Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will initially exploit two magnetite iron ore deposits in Sweden. The process will yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project in Sweden is well underway and mining is planned to start in the fourth quarter of 2012. Northland has entered into off-take contracts for the entire production from Kaunisvaara. 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 its Pellivuoma deposit 15 km from the Kaunisvaara process plant.
