Northland Confirms Short term Funding – Secures Operations in Kaunisvaara
Luxemburg, March 22, 2013 – Northland Resources S.A. (OSE: NAUR, Frankfurt: NPK, First North/Nasdaq: NAURo – together with its subsidiaries, “Northland” or “the Company”) announces that the Company has received approval from key stakeholders for short term financing amounting to USD 20 million.
On March 8, 2013, the Company announced that it anticipated receiving approval from its bond-holders and major suppliers for additional short term funding to maintain the Company’s current operations. These stakeholders have today agreed to provide short term financing totaling USD 20 million, of which USD 10 million comes from the debt service account of the bond trustee, with an additional USD 10 million being provided as a bridge facility by major suppliers. The short term financing will be disbursed at defined milestones during the period up until mid-April 2013.
The funding received is expected to allow the Company to continue its operations at the present level. This will enable the company to continue its work on the logistics chain as scheduled. The Company believes it will realistically be able to resolve its long term financing solution during April 2013.
President & CEO, Northland Resources S.A.