OSLO Nov 14 Nordic iron ore miner Northland
Resources, which has struggled to raise funding this
year after a cost blowout at its key project, may need an
additional $150 million in financing, it said on Thursday.
"To ensure that the targeted liquidity headroom is available
during temporary peaks in working capital requirements, ... the
Company would need additional funding of up to approximately
$150 million," it said in its first statement since delaying the
publication of its third-quarter results.
The company was forced to briefly halt operations this year
after running out of cash, forcing a painful reorganisation and
sending its shares tumbling from a January peak of 702 Norwegian
crowns to 2.64 crowns on Wednesday.
Northland was scheduled to present its results on Tuesday
but on the day announced they would be delaying them to Nov. 28.
The company has struggled with a delayed production ramp-up,
tumbling iron ore prices on global markets and unexpectedly high
costs for its flagship project.
In a separate statement, the firm said it was planning to
produce 1 million tonnes of iron ore concentrate this year and
ramp up production to a run rate of 4 million tonnes by the
fourth quarter of 2014.
Its processing plant is currently producing 4,000 to 6,000
tonnes of iron ore concentrate per day. But there could be a
production shortfall of 15,000-20,000 tonnes per month during
November and December due to technical problems, it said.
(Reporting by Gwladys Fouche, editing by Balazs Koranyi)