Northern Iron to raise capital
The owner of Sydvaranger iron ore mine in northern Norway went into a trading halt waiting an expected capital raising.
A market release to from Northern Iron to Australian Securities Exchange (ASX) on Tuesday reads that the securities of Northern Iron will be placed in trading halt session state pending the release of an announcement with regard to a material capital raising. Such announcement will come no later than Wednesday.
The board of directors of Northern Iron have also decided to undertake a review of the company’s strategic options with a view to maximizing value for all shareholders.
The review will consider corporate and operational strategies and include a review of ownership options available to the company so as to determine whether a proposal for Northern Iron is available at a price, and on terms, that are in the best interest of all shareholders. The review will be ready within some months, the company reports.
Northern Iron’s mine is located near Kirkenes in northern Norway. Earlier this year BarentsObserver reported that the company announced a probable ore reserves increase of 42%.
