Wednesday , 23 Mar 2011
Luxembourg: Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK – “Northland” or “the Company”) is pleased to announce that it has signed an agreement to sell the Company’s non-ferrous projects in Sweden to Orex Minerals Inc. (“Orex”). This agreement follows the spirit and content of the Letter of Intent that was signed between the parties on October 27, 2010. The total consideration is valued at a minimum of USD 15.5 million, and includes a mix of upfront cash and shares, as well as deferred cash and share payments, guaranteed investments and a 2% Net Smelter Royalty (“NSR”).
“The sale of the non-ferrous projects in Sweden, including the Barsele Gold Project, is in line with the Company’s strategy to focus on the development of its iron ore deposits. The Board of Directors believes that the inherent value of the Swedish non-ferrous projects will be better developed by a team that can focus its resources and technical expertise on advancing these projects towards mining operations.” said Karl-Axel Waplan, Northland’s Chief Executive Officer.