Feb 3 2014
Northland Resources S.A. - (together with its subsidiaries "Northland", "NRSA" or the "Company") announces that it has signed a leasing arrangement for mobile mine equipment with a major Scandinavian bank for a total amount of USD 25 million.
The Company has today signed an arrangement with a major Scandinavian bank for a leasing facility of mobile mine equipment delivered during 2013 and 2014, for a total amount of USD 25 million ("the Lease"). As a prerequisite for signing this leasing arrangement, the agreement with Caterpillar Financial Nordic Services AB (described in the Investor Presentation dated May 30, 2013) has been renegotiated and downsized to enable the Company to have two lease providers instead of one for its mobile mine equipment.
It should be noted that the Lease does not affect the Company's financing target of up to USD 150 million (as described in the press release dated November 14, 2013), since the Lease was already accounted for in the assumptions underlying this target.
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 is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern Finland.
Source: http://www.northland.eu/