Northland resumes operations after creditors agree to offering
TORONTO (miningweekly.com) – Iron-ore junior Northland Resources on Tuesday resumed operations at its Kaunisvaara direct shipping iron-ore mine, in Sweden, after a consortium of creditors approved a $335-million bond offering that would allow the company to complete construction and take the project to commercial operation.
Northland halted operations in May after the bondholder trustee, Norsk Tillitsmann, blocked the company’s access to its bank accounts, following unsuccessful efforts to raise capital. The company shipped its first iron-ore in February.
“We are very pleased to have successfully closed the offering, which is expected to provide sufficient funding to complete the Kaunisvaara project,” Northland CEO Karl-Axel Waplan said.
Meanwhile, the company completed several more shipments of iron-ore of about 55 000 t each from the Port of Narvik, in Norway, where its storage facilities were recently completed, which would reduce loading costs.
The company planned to produce about 1.2-million tonnes in 2013. The mine would ramp up to a production capacity of about four-million tonnes a year at the end of the third quarter of 2014.
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