RE: RE: Get RID Of These CROOKS Here is my opinion on Northland. Looks like more equity because even at 13% on bond not enough takers.
1. Intial banks in the club deal must not have been able to perform and could not see there way clear to finance with the funding gap between phase one and phase two of the project. Take the time to look at the feasiblity study to see cost of phase two. Was the cost of the project ever $850 milliion?
2. Logistics soultion is difficult to buy into long term. Where is the Swedish government? No help why? Look at who owns LKAB.
3 The first mistake was not developing the Finnish side first, and let the infrastructure over time build to you. Unlike the Sweds the Finns were more than willing to help on the infrastructure. Rail to mine site, power, tailing pond in place, pre-stripped pit, help with port (dreging, rail, dock). Prduce Iron, Gold, and Copper whats not to like? Hoiw about a capex of about $500 millioin vs 1 billion.
4. Move to Luxenburg was solely for the benifit of the shareholders in Norway thus the brokers in Norway. It did nothing in the end for the share price nor governance, Northland is European company look at Europe, look at Canada. I will take my chances with Canada. Why no Canadian banks in club deal to start with.
5.The deed is done they have to take the high priced money there is no other way to save the devlopment of project. Finance is a rough business take a lesson all.
6.Who ever is doing the equity issue should have been stopped from trading shares for their clients after the mandate was signed with Northland.
7. The lack of transparencey is amazing. What did they know and when did they know it??? When did they know that the bank financing was not going to go through and when did they report it to the shareholders?