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Northland Resources shares tumble after cancelling equity offering

6th February 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Iron-ore concentrate producer Northland Resources’ Toronto-listed shares on Tuesday slid by 26.47% after the company cancelled its planned $250-million equity issue and $125-million bond tap, which it expected would cover rising capital and operating costs at its Swedish mine.

“It became apparent to the company and its advisers Arctic Securities and Pareto Securities 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,” the company said in a statement.

Mining Weekly Online at the end of January reported the Toronto-listed company would start loading its first vessel with high-grade iron-ore from its Kaunisvaara mine, in Sweden, on February 9, for shipment to end-customer and partner Tata Steel UK, in the Netherlands.

Northland’s TSX-listed stock, which had lost 85.59% of its value since the start of the year, closed at 12.5 Canadian cents apiece in Tuesday.

Edited by Creamer Media Reporter

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