Northland Signs Mobile Mining Equipment Maintenance Agreement
Luxembourg, April 12, 2012 - Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland" or the "Company") is pleased to announce that Pon Equipment will be responsible for the maintenance of the Caterpillar equipment to be used at Northland's Kaunisvaara project.
Press conference
Northland will hold a press conference at Näringslivets hus, in Stockholm, Sweden, at 13.00 CET, April 12, 2012. Karl-Axel Waplan, President & CEO of Northland, together with Thomas Smith, Chairman Pon Equipment AB, will present the maintenance agreement. To participate, please register by emailing to Petter Brunnberg, Investor Relations (pbrunnberg@northland.eu). Sandwiches will be served from 12.30.
The agreement with Pon Equipment comprises maintenance, repairs and service on the 23 machines that will be delivered from the second quarter of 2012 until fourth quarter 2014. The fleet consists of haul trucks, mining shovels, track dozers, wheel loaders and motor graders.
"Reliable mine mobile equipment is key to a productive operation. With the purchase agreement signed in March 2011, we expect full support and commitment from Pon Equipment," said Peter Pernlöf, COO and VP - Procurement and Energy at Northland. "Pon Equipment has the experience and service capability that Northland needs for this project. We are pleased that the agreement is in place as production is scheduled to begin in the fourth quarter of 2012."
The contract will be in effect for five years from Northland's acceptance of the first equipment.
"We are pleased to be partner with Northland in supplying and taking full responsibility for maintaining their entire fleet of loading, hauling and support equipment", said Mr Thomas Smith, VP of Pon Mining and Chairman of Pon Equipment AB. "With this long term agreement and our recently announced SEK 100 million investment in a Component Rebuild Center in Boden, we are confident that we have the right resources to secure Northlands requirements for an optimized loading and hauling operation".
"Karl-Axel Waplan"
President & CEO, Northland Resources S.A.
For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Peter Pernlöf, COO and VP - Procurement and Energy: +46 70 220 27 00
Peder Zetterberg, Acting CFO, +46 708 652 120
Anders Antonsson, Vice President - Investor Relations: +46 709 994 970
Marguerite Manshreck-Head, Investors Relations, Canada: +1 647 224 7882
Or visit our website: www.northland.eu
Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will exploit two magnetite iron ore deposits in Sweden. The process is expected to yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is well underway and production is planned to start in the fourth quarter of 2012. Northland has entered into industrial off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for its Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland.
Pon Mining Division is part of the Pon Equipment group that is the exclusive distributor of Caterpillar mining and construction equipment in Sweden, Norway, Denmark and the Netherlands and covers everything in the building & construction, industrial and mining activities. For further information, see www.pon-cat.com.