LUXEMBOURG, LUXEMBOURG--(Marketwire - June 18, 2012) - Northland Resources S.A. (News - Market indicators)(FRANKFURT:NPK)(OSLO:NAUR)(OSLO:NAUR.R) ("Northland" or "the Company"), announces that it has finalized the financing of its drill rigs from Atlas Copco that will be used at the Kaunisvaara site.
Atlas Copco, a leading supplier of mining equipment will deliver five drill rigs, two pieces of the model SmartROC D65 and three pieces of the model Pit Viper-271. Atlas Copco Customer Finance will provide financial leases for all drill rigs, in total USD 8 million.
Deliveries from Atlas Copco's facilities at Örebro, Sweden and Garland, Texas, USA, were initiated during the first week of June. In accordance with the original time table, the first drills are expected to begin operating at the Tapuli mine in October 2012.
Northland intends to begin production during the fourth quarter 2012 and is scheduled to deliver its high quality iron ore concentrate to the market in the first quarter of 2013.
Karl-Axel Waplan, President & CEO
Northland Resources S.A.
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 initially exploit two magnetite iron ore deposits in Sweden. The process will yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project in Sweden is well underway and mining is planned to start in the fourth quarter of 2012. Northland has entered into off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari, northern Finland and for its Pellivuoma deposit 15 km from the Kaunisvaara process plant.
Atlas Copco is an industrial group with world-leading positions in compressors, construction and mining equipment, power tools and assembly systems. The group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded in 1873, the company is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2011, Atlas Copco had about 37,500 employees and revenues of SEK 81 billion. Learn more at www.atlascopco.com.