News

September 17, 2008

Another Piece Of The Puzzle Falls Into Place For Northland Resources On Its Iron Ore Development Projects In Scandinavia

By Alastair Ford

“Luckily”, says Ralph Rushton, “we’re not on the road for cash”. Pity any poor company that is, but with around C$115 million in the bank, Northland Resources, of which Mr Rushton is a director, has plenty of money. What’s more, since most of that money was raised in Scandinavia, it’s been denominated in Norwegian crowns, a currency, which, linked as it is to Norway’s huge exposure to the oil price, has remained strong for a long time now. There’s been a bit of weakening lately, but nothing to get too alarmed about.

Nice amount of money for a junior to have in the bank, but even given the weaknesses that are beginning to show in many of Northland’s junior peers, Mr Rushton is keen to emphasise that it’s not war chest. “Our treasury needs to be safeguarded for development”, he says, quite clearly. Which is not to say that Northland won’t look at opportunities at all, but continues Mr Rushton, “they’d really have to make sense”. By that he means that there would have to be some clear fit with Northland’s...