Northland halts operations
northland.eu – 07/10/14
Luxembourg, October 7, 2014 – Northland Resources SE (OSE: NAUR, Frankfurt: NPK, Nasdaq OMX/First North: NAURo – together with its subsidiaries “Northland”, “NRSE” or the “Company”) announces that its operations will be halted indefinitely, as a consequence of the Company’s extremely constrained liquidity. For the same reason, the Company is forced to give most of its employees a notice of termination. As announced on September 30, 2014, the recent deterioration in iron ore prices has put further pressure on Northland’s liquidity. The Board of Directors (the “Board”) has therefore requested that the holders of the Super Senior Bridge Bond (“SSBB”) release funds currently held in escrow.
Northland did not receive enough support to access the requested funds. The Board has therefore decided to halt the Company’s operations in a controlled manner and intends to complete delivery of the concentrate already produced. The decision is made in order to preserve liquidity and to allow for operations to be resumed when long-term financing has been secured. As a result of the operational halt, Northland will be able to continue working towards securing a long-term financing solution and try to finalize ongoing discussions with financial and industrial investors. Read More