March 22, 2011 / 8:36 PM / in 7 years

UPDATE 1-Northland Resources to sell non-core assets in Sweden

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March 22 (Reuters) - Canadian minerals explorer Northland Resources Inc said it agreed to sell its non-ferrous assets in Sweden to Orex Minerals Inc for $15.5 million in cash and stock, to focus on its iron-ore deposits.

Northland, a development-stage mining company with iron assets in northern Sweden and Finland, had signed a letter of intent regarding the sale with Orex in October, last year.

As per the terms of the deal, which includes sale of its Barsele gold project, Northland will get $5 million in cash over two years, and $3.5 million worth of Orex shares to be issued over a period of four years from signing of the agreement.

Northland will retain a 2 percent net smelter royalty, which can be bought back by Orex at $4 million, it said in a statement.

Vancouver, British Columbia-based Northland’s shares closed up 4 Canadian cents at C$2.97 on Tuesday on the Toronto Stock Exchange.

(Reporting by Arnika Thakur in Bangalore; Editing by Prem Udayabhanu)

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