The Kaunisvaara mine in northern Sweden is one of the biggest new industrial projects in the Barents Region. (Photo: Northland.eu)
After having been on the verge of bankruptcy, the Northland Resources now confirms that it has the funding needed for continued development of the great Kaunisvaara iron mine project in northern Sweden.
The international mining company in a press release confirms that had reached agreement with key stakeholders over a $362 million senior secured bond offering. At the same time, Executive Chairman Anders Hvide announces his resignation from the company.
The situation in the company will be discussed at a General Meeting of shareholders on Wednesday this week.
As previously reported, the Northland stock plunged 86 percent following the company’s statement in Janaury this year about it having identified a large funding shortfall.
Northland is the operator of the Kaunisvaara iron project outside Pajala, northern Sweden. The project employs more than 800 people.
At the end of December 2012, Northland had invested more than $900 million in the Kaunisvaara project (including prospecting, geological and financial studies and the project build-up). In Februry 2013, the company sent its first shipment of high grade iron ore concentrate from Narvik, northern Norway, followed by a second in April.
The Kaunisvaara project is located only 15 km from the border to Finland and about 150 km from LKAB’s Kiruna and Malmberget mines.
Northland Resources also controls the license to the Hannukainen project in the nearby Finnish Kolari distict.