Tentative Agreement to Sell Northland's Non-Ferrous Assets in Sweden
(Thomson Reuters ONE) -
Luxembourg, October 27, 2010: Northland Resources S.A. (TSX: NAU, OSE: NAUR,
Frankfurt: NBS - "Northland" or "the Company") is pleased to announce that it
has signed a Letter of Intent ("LOI") to sell the Company's non-ferrous projects
in Sweden to Orex Minerals Inc. ("Orex"). The total consideration is valued at a
minimum of USD 15.5 million, and includes a mix of upfront cash and shares, as
well as deferred cash and share payments, guaranteed investments and a 2% Net
Smelter Royalty ("NSR").
Mr. Karl-Axel Waplan, President and CEO of Northland, commented, "The signed LOI
for the sale of the non-ferrous projects in Sweden, including the Barsele Gold
Project, is in line with the Company's strategy to focus on iron ore and dispose
of non-core assets. The Board of Directors believes that the inherent value of
the Swedish non-ferrous projects will be better developed by a team that can
focus its resources and technical expertise on advancing these projects towards
mining operations."
Northland will receive a total of USD 5 million in cash over two years, and USD
3.5 million worth of Orex shares to be issued over a period of four years from
signing of the Final Agreement. Orex has also guaranteed that a minimum USD 3
million will be spent on the non-ferrous projects in the first two years.
Finally, Northland will retain a 2% NSR, which can be purchased at any time by
Orex for USD 4 million in cash. Northland will also have the right to appoint a
Director to the Board of Orex.
Orex is a silver and gold exploration company with projects in Mexico. It is
listed on the TSX Venture Exchange under the trading symbol REX. The Orex
management team has a proven track record in exploration and company
development, most recently with the TSX Venture Exchange-listed company Orko
Silver Corp.
Final details, conditions and approvals are expected to be completed over the
next few months, with closing expected on or about January 26, 2011. A further
announcement will be made upon closing. Pareto Securities AS has acted as
financial advisor with respect to this transaction.
ON BEHALF OF THE BOARD
"Karl-Axel Waplan"
President and CEO
Northland Resources S.A.
For more information please contact:
Karl-Axel Waplan, President & CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Eva Kaijser, CFO: +46 709 32 09 01
Marguerite Manshreck-Head, Investor Relations, Canada: +1 647 224 7882
Or visit our website at: www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1455874]
Press release PDF:
http://hugin.info/137015/R/1455874/395780.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Northland Resources S.A. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2010 - 11:47 Uhr
Sprache: Deutsch
News-ID 46567
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