NORTHLAND CANCELS ANNOUNCED EQUITY ISSUE AND BOND TAP ISSUE, CONTINUES TO EXPLORE ALTERNATIVE FINANCING

 

 

 

 

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. OTHER RESTRICTIONS ARE APPLICABLE. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS PRESS RELEASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN.

 

Luxembourg, February 5, 2013 – Northland Resources S.A. (TSX: NAU, OSL: NAUR, Frankfurt: NPK, Nasdaq OMX/First North: NAURo – “Northland” or the “Company”) announces (with reference made to the Company’s press releases dated January 25 and 29, 2013) that the previously announced contemplated USD 250 million equity issue and USD 125 million tap issue have been cancelled. The Company continues to engage in constructive discussions with a number of investors, including bondholders, creditors and other stakeholders in order to present a sustainable long-term financial solution.

 

As disclosed in the press release dated January 25, 2013, Northland intended to raise USD 250 million in an equity issue (the “Equity Issue”) and USD 125 million in a tap issue on the existing USD 350 million bond (the “Tap Issue”, and together with the Equity Issue, the “Offerings”) to fund capital and operating expenditure related to its Kaunisvaara project and the associated logistic chain, as well as for general corporate purposes (including the Hannukainen project and transaction costs). As announced on Tuesday January 29, 2013 the subscription period for the Equity Issue was extended to Monday February 4, 2013 at 4:30 pm CET.

 

It became apparent to the Company and its advisors Arctic Securities ASA and Pareto Securities AS (the “Advisers”) that the Company is not in a position to conclude the Offerings at the end of the subscription period. The Company and its Advisers are engaged in discussions with a number of potential investors regarding the Company’s capital needs and a long-term financial solution. On this basis, the Company has concluded that it is in the best interest of the Company, its shareholders, bondholders, creditors and other stakeholders, to cancel the Offerings. The Company will update the market on developments in due course.