Northland Appoints Banks for Project Financing
Northland Resources S.A. announce that the Company has appointed and retained leading global mining finance and investment banks – Societe Generale, UniCredit Bank AG and WestLB AG as exclusive Mandated Lead Arrangers in the proposed project financing of the Kaunisvaara Iron Concentrate Project. The Facility will be subject to each Mandated Lead Arranger securing its internal credit approvals, due diligence and related documentation.
The Kaunisvaara Iron Concentrate Project contemplates the staged development of 3 magnetite iron ore deposits – Tapuli, Sahavaara and Pellivuoma – that would provide feed to a single, multi-line processing facility in Sweden, producing up to 5 Mtpa of a high-grade, high-quality magnetite iron concentrate. On September 7, 2009, Northland released the results from the Kaunisvaara PEA, confirming that the Project was technically feasible and financially positive. Kaunisvaara is currently the subject of a Feasibility Study to be completed in 2Q 2010.
Anders Hvide, Executive Chairman of Northland commented, “Our Board of Directors and Management are pleased to welcome these world class financial institutions to the team developing Kaunisvaara. This is a significant step on the path toward financing and building the mines and delivering on our commitment to build shareholder value in a sustainable fashion.”
“The banks view Kaunisvaara as an attractive mining project in a low risk operating environment, given the robust project economics, existing infrastructure, low political risk and strong community support,” added Karl-Axel Waplan, President and CEO.
Societe Generale (SG) is one of Europe’s largest banking groups, with over 163,000 employees and 30 million clients in 82 countries. SG is a leader in the mining finance sector with specialised mining finance teams located in London, New York and Toronto. SG has a track record of arranging major international finance transactions, across a wide range of client profiles. With a strong international track record, SG’s recognised in-house technical expertise and risk management platforms allow it to provide its clients with a broad spectrum of financing and risk management solutions.
UniCredit Bank AG, a member of UniCredit Group, has been an active mining finance house for over 20 years catering to the needs of its diverse and broad client base. Its deep rooted industry and sector knowledge, coupled with its expertise in complementary banking and risk management services, makes UniCredit Group a strong partner in financing the mining and metals industries. UniCredit Group is a major international financial institution with strong roots in 22 European countries as well as representative offices in 27 other markets, with over 10,000 branches and approximately 170,000 employees.
WestLB AG is one of Germany’s leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, corporate and structured finance, capital market and private equity products, and transaction services. WestLB’s Metals and Mining team incorporates years of sector experience, with the institution’s global reach and local knowledge to deliver advisory, risk management and corporate and structured finance products in a timely, consistent and reliable manner.
Societe Generale, UniCredit Bank AG and WestLB AG will work closely with Northland and its advisors in structuring and executing the financing and in considering a range of financing options available to the Company in the project development.
Northland is being advised in the project development by KPMG Corporate Finance LLC. KPMG Corporate Finance LLC, a U.S. limited liability company, is a member of FINRA and SIPC and is registered as a broker dealer with the SEC. KPMG Corporate Finance LLC has more than 2,200 investment banking professionals working across 62 countries and is one of the leading global middle market investment banks.
