The acquisition process has been cancelled by the group of investors
Luxembourg, December 5, 2014 – Northland Resources SE (OSE: NAUR, Frankfurt: NPK, Nasdaq OMX/First North: NAURo – together with its subsidiaries “Northland”, “NRSE” or the “Company”) announces that the Company has been informed that the group of Swedish investors cancels the acquisition process that had been initiated based on the proposal to the Company’s major creditors. Furthermore, Northland has also been informed by the counterpart for a contemplated outsourcing agreement that the counterpart has terminated discussions and negotiations that, if materialized, would have provided new liquidity to the Company. As a consequence, the Board has requested a halt in trading of the Company’s shares and bonds until further notice is given.
As announced on November 20, 2014, a group of Swedish investors with industrial competence (the “Investors”) have presented a proposal to purchase debt from the Company’s major creditors, including the Company's bondholders (the "Proposal"). The Company has now been informed that the Investors cancels the acquisition process that had been initiated based on the Proposal. Furthermore, the Company has been informed by the counterpart for a contemplated outsourcing agreement that the counterpart has terminated discussions and negotiations with immediate effect that, if materialized, would have provided new liquidity to the Company. A part of the additional liquidity was intended to be used for fulfillment of the Company´s obligations under the reorganization. As a consequence, the Board of Directors (the “Board”) has requested that all trading of the Company's shares and bonds are halted until further notice is given. The Board will evaluate the information received and the Company will thus revert with a new press release at the beginning of next week.
For more information, please contact:
Johan Balck, CEO: +46 978 126 60
Lars Söderqvist, the administrator of the reorganization: +46 80 407 88 00
Email: ir@northland.eu or visit our website: www.northland.eu
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. The Company has also finalized a Definitive Feasibility Study (“DFS”) for its Hannukainen Iron Oxide Copper Gold (“IOCG”) project in Kolari, northern Finland.
Forward-Looking Information
This announcement may include “forward-looking” information within the meaning of applicable securities laws. This forward-looking information can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative, or other variations or comparable terminology. This forward-looking information includes all matters that are expectations concerning, among other things, Northland’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking information involves risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking information is not a guarantee of future performance and that Northland’s actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, even if Northland’s results of operations, financial condition and liquidity, and the development of the industry in which Northland operates are consistent with the forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.