November 14, 2013 / 9:01 AM / in 4 years

Iron ore miner Northland may need another $150 mln in financing

OSLO, Nov 14 (Reuters) - 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)

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