Northland Resources SA announced that it’s wholly owned subsidiary Northland Resources AB has signed a term sheet for a USD 20 million bond loan. The bond has a 12.25% interest coupon and matures February 26th 2016.
The present senior secured bond issued by Northland Resources AB with ISIN NO0010636194 and ISIN NO0010636137 is governed by a bond agreement dated March 5th 2012. This agreement allows for the additional USD 20 million debt. The new bond loan will be senior debt of the Issuer, secured on a pari passu basis with the existing outstanding bonds, but will have no voting rights and enforcement rights.
The proceeds from the new bond will finance Capex investments for Kaunisvaara as well as working capital.
Source - Northland Resources SA