Northland Sells its Swedish Non-Ferrous Assets
(Thomson Reuters ONE) -
Luxembourg, March 22, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR,
Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that it
has signed an agreement to sell the Company's non-ferrous projects in Sweden to
Orex Minerals Inc. ("Orex"). This agreement follows the spirit and content of
the Letter of Intent that was signed between the parties on October 27, 2010.
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").
"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 the development of
its iron ore deposits. 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." said Karl-Axel Waplan, Northland's Chief Executive Officer.
Northland will receive a total of USD 5 million in cash over two years, and USD
3.5 million of Orex shares to be issued over a period of four years from the
signing of the 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.
The transaction is subject to the approval of relevant authorities including the
TSX. A further announcement will be made upon closing. Pareto Securities AS has
acted as financial advisor with respect to this transaction.
Northland is a development-stage mining company with a portfolio of iron
projects in northern Sweden and Finland. Northland's Kaunisvaara Project
contemplates the staged development of magnetite iron ore deposits that would
provide feed to a single, multi-line processing facility in Sweden, producing a
high-grade, high-quality magnetite iron concentrate. The results of the
Feasibility Study on the Kaunisvaara Project were released September 27, 2010.
"Karl-Axel Waplan"
President & CEO
Northland Resources S.A.
For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Eva Kaijser, Chief Financial Officer: +46 70 932 09 01
Marguerite Manshreck-Head, Investors Relations, Canada: + 1 647 224 7882
Or visit our website: www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(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
[HUG#1499220]
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Datum: 22.03.2011 - 20:49 Uhr
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News-ID 52686
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