Northland Resources closes private placement & conducts public offering
Vancouver, July 13, 2007: Buck Morrow, President of Northland Resources Inc., is pleased to announce that the Company has closed its private placement financing (previously announced on June 18 and 19, 2007) of 22,792,500 common shares at a purchase price of NOK 26.50 per share and has received net proceeds, after commission, of NOK 573,801,188 (approximately CDN$104.6-million). Pareto Securities ASA of Oslo, Norway acted as the agent in selling the offering.
Northland intends to publish a prospectus on July 16, 2007, and the shares issued in the private placement will be tradable on the Oslo Stock Exchange from that date.
The Company has also arranged for the sale of up to an additional 2,279,250 shares through Pareto by way of a public offering in Norway, with preferred allocation to shareholders of the Company who were registered in the VPS on June 18, 2007 and were not invited to participate in the private placement. The issue price will be NOK 26.50 per share, providing Northland with additional net proceeds of up to approximately CDN$10.4-million. Further details of the subsequent public offering will be included in the Company's prospectus.
The private placement shares and the public offering shares have a hold period which restricts trading on the TSX Venture Exchange or otherwise to Canadian residents, until December 16, 2007, being four months and one day following the issuance of the public offering shares which is anticipated to occur on or about August 15, 2007. The offerings are subject to final acceptance in Canada by the TSX Venture Exchange.
Background
Northland Resources Inc. is a well-structured, debt free junior exploration company with a portfolio of high quality iron, gold, and base metal exploration projects in Sweden and Finland.
ON BEHALF OF THE BOARD
"Buck Morrow"
NORTHLAND RESOURCES INC.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
Northland Resources Inc.
Buck Morrow, President
Ralph Rushton, Investor Relations
Toll Free: 1-866-719-8962
(NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWS WIRE SERVICES)
THIS IS NOT AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES. THE DISTRIBUTION OF THIS PRESS RELEASE AND THE OFFER AND SALE OF THE SECURITIES IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW. ANY PERSONS READING THIS PRESS RELEASE SHOULD INFORM THEMSELVES OF AND OBSERVE ANY SUCH RESTRICTIONS. THIS IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. NO SECURITIES HAVE BEEN REGISTERED UNDER THE U.S SECURITIES ACT TO BE OFFERED FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED FOR SALE IN THE UNITED STATES ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS.