Northland Announces Third Draw Down From its Bond Loan
LUXEMBOURG, LUXEMBOURG, Nov 29, 2012 (Menafn - MARKETWIRE via COMTEX) --Northland Resources S.A. (frankfurt:NPK)(oslo:NAUR)(omx:NAURo) ("Northland" or the "Company") has received theNorsk Tillitsmann's confirmation to execute its third draw down.Following this draw down of USD 25 million, the Company has USD 67million remaining of its USD 350 million bond loan facility.
"I am very pleased with the continued robust development of ourKaunisvaara project", said Karl-Axel Waplan, President & CEO ofNorthland Resources. "The report from the independent engineer, RoyalHaskoningDHV, is again a strong validation of the project managementteam's capacity to meet the tight deadlines in a professional manner.This third drawdown, in combination with other financial facilitiesprovided by a group of international institutions, is expected toensure that Northland has enough funding to start production andinitiate the shipments to customers in the early part of the firstquarter 2013".
In February 2012 Northland issued a corporate bond of USD 350million. The funds are available on an escrow account with NorskTillitsmann ASA as the trustee. Northland Resources is entitled todraw down from the escrow account only after a Cost-to-Complete testperformed by Royal HaskoningDHV (formerly known as Turgis ConsultingLtd) has been conducted.
Norsk Tillitsmann, in agreement with Northland, has appointed RoyalHaskoning to act as independent engineer to monitor Northland untilmaturity of the bond in 2017. Since Royal HaskoningDHV now hasconfirmed the satisfactory results of Northland's thirdCost-to-Complete test, Northland has executed its third draw down ofabout USD 25 million. The previous draw downs of in total USD 240million were announced on July 2 and September 17, 2012.
The Northland bond has a 13% coupon rate which is payable insemi-annual installments. As per the bond agreement, the firstinterest payment on the bond was paid in September 6, 2012. Toservice the coupon rate for the next three payments, the Company planto retain the remaining amount on the escrow account.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is set to become a producer of iron ore, with a portfolioof production, development and exploration mines and projects innorthern Sweden and Finland. The first construction phase of theKaunisvaara Project is near completion and production is expected tostart in November 2012. The Company will produce high-grade,high-quality magnetite iron concentrate in Kaunisvaara, Sweden, wherethe Company will exploit two magnetite iron ore deposits, Tapuli andSahavaara. Northland has entered into off-take contracts with threepartners for the entire production from the Kaunisvaara Project overthe next seven to ten years. The Company is also preparing aDefinitive Feasibility Study ("DFS") for its Hannukainen Iron OxideCopper Gold ("IOCG") project in Kolari, northern Finland and for thePellivuoma deposit, which is located 15 km from the Kaunisvaaraprocessing plant.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
46 705 104 239
Northland Resources S.A.
Peder Zetterberg
Acting CFO
46 708 652 120
Northland Resources S.A.
Anders Antonsson
Vice President - Investor Relations
46 709 994 970
www.northland.eu
SOURCE: Northland Resources S.A.
http://www.northland.eu
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