The mining company Northland Resources has completed its equity- and bond offering, and by that secured USD 675 million, which will be used for the completion of the Kaunisvaara project outside Pajala in northern Sweden.

The company is issuing 288 million new shares at the price of NOK 6.50 per share, and thereby securing USD 325 million by the equity offering. 

The new shares will start trading February 24, 2012. In addition to the equity offering, USD 350 million has been secured by a bond offering.

Karl-Axel Waplan, President and CEO of Northland Resources, is pleased with the financing.

“We have secured the financing in times of turbulent capital markets, and the robust response from current and potential shareholders is most encouraging and the market has now confirmed that the balance between equity and debt has been optimized," said Karl-Axel Waplan, President and CEO of Northland Resources S.A.

"The completion of the bond and equity offering for a total of USD 675 million, in combination with the Bridge Financing from Standard Bank in December last year, have secured the required financing for the Kaunisvaara project to first production. We believe this will enable the Company to start mining during the fourth quarter this year, with the first shipment of concentrate occurring in the first quarter 2013, fully in accordance with the plans set up when we started execution of the project in January 2011”.

For more details about the financing, read the press release on this webpage.