Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Metso Corporation’s stock exchange release on May 30, 2013 at 8:45 a.m. local time
Northland Resources has yesterday announced a possibility of a long-term financial solution in the form of a USD 355 million bond issue.
A consortium comprising Norrskenet, Metso, Peab and Folksam will invest a total of USD 100 million, or USD 25 million each, in the bonds, and will obtain the right to appoint four out of seven members on Northland’s Board of Directors. The aim is to assume the necessary influence in the company, insure the completion of the project as currently envisioned and to provide expertise with the mission to restore confidence in the company.
As part of the process, Northland will get a new Board. The consortium has proposed Mr. Olav Fjell as Chairman of the Board and will propose three other members once the bond offering is fully subscribed and approved.
Metso has supplied mining equipment and services to Northland’s Kaunisvaara project in northern Sweden. The refinancing also includes a long-term payment schedule for Metso’s outstanding receivables at Northland.
The consortium’s investment is subject to the bond offer being fully subscribed when the subscription period ends on today, May 30, 2013, at 22:00 CET and the consortium being granted the right to appoint four of seven members on Northland’s Board.
