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Northland Resources wraps up sale of non-ferrous activities in Sweden.

MANews-(C)2009-2011

Canadian miner Northland Resources (TSE:NAU) said it had completed the sale of its non-ferrous operations in Sweden to sector player Orex Minerals (CVE:REX) for at least USD15.5m (EUR10.4m) in cash and stock.

The deal involves a combination of upfront and deferred payments, with an initial consideration of USD2m in cash and 1,153,997 Orex shares. An additional USD5m in cash will be paid over two years and USD3.5m in Orex shares will be issued over a four-year period.

According to the vendor, the divestment is in line with its strategy to concentrate on the development of its core iron ore deposits. Northland's board anticipates also an accelerated development of the Swedish assets as part of the new owner, which will invest at least USD3m in the non-ferrous assets in the first two years.

Pareto Securities AS acted as financial advisor in this transaction.Country: , SwedenSector: Metals/MiningTarget: Northland Resources' non-ferrous business in SwedenBuyer: Orex Minerals IncVendor: Northland Resources IncDeal size in USD: 15.5mType: DivestmentFinancing: Cash & StockStatus: Closed

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Publication:M & A Navigator
Geographic Code:8NEWZ
Date:May 5, 2011
Words:186
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