Investments in companies - 25.11.2010
Finnish Industry Investment has subscribed in an equity offering for some MEUR 7.5 worth of shares in Northland Resources S.A., representing approximately a 2% stake in the company. Northland Resources is a mining exploration and development company that is listed on the Toronto and Oslo stock exchanges. The company arranged an equity offering to fund capital expenditures and start up production at the Kaunisvaara project in Sweden. Some of the funds will be used for further developing the Hannukainen project in Kolari, Finland.
We are very pleased with the outcome of this offering. We have now raised the necessary financing to start the development of our Kaunisvaara project and to execute the feasibility study of the Hannukainen project, says Karl-Axel Waplan, President and CEO of Northland Resources.
The companys mining properties are mainly iron ore. Demand for iron ore is expected to grow strongly over the next few years as steel production, particularly in developing countries, increases. Most of the iron ore used in Europe is imported into Europe from other countries. Nordic iron ore is considerably cheaper for European industry owing to its lower freight costs.
Our investment will be a major boost to exploration of the Hannukainen reserves in Finland. The opening of a new mine in Kaunisvaara will also stimulate Laplands economic development, says Director Kimmo Viertola from Finnish Industry Investment.
Finnish Industry Investment has invested in altogether eight mining projects located in Finland, five of which are currently in its investment portfolio.
Northland Resources is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland. www.northland.eu
Finnish Industry Investment Ltd is a government-owned investment company whose mission is to promote Finnish business, employment and economic growth through capital investment. Finnish Industry Investment co-invests in growth companies, directly and through funds, together with private investors. Capital investments are needed for financing the growth of portfolio companies, and for internationalisation, spin-offs, major industrial investments, and both sectoral and corporate restructurings. The targets are in all sectors. The investments of Finnish Industry Investment amount to MEUR 660. www.industryinvestment.com
For further information, please contact:
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
tel. +46 705 104 239, e-mail: KAWaplan (a) northland.eu
Kimmo Viertola, Director, Finnish Industry Investment Ltd
tel. +358 50 309 2734, e-mail: kimmo.viertola (a) industryinvestment.com