UPDATE 1-Northland may sell Swedish non-core assets to Orex

* Non-ferrous projects in transaction valued at $15.5 mln

* To get $5 mln in 2 yrs, $3.5 mln of Orex shrs over 4 yrs

* To retain 2 pct net smelter royalty

* Orex to spend at least $3 mln on projects in first 2 yrs

Oct 27 (BestGrowthStock) – Canadian minerals explorer Northland
Resources Inc (NAU.TO: ) said it intends to sell its non-core,
non-ferrous projects in Sweden to Orex Minerals Inc (REX.V: ) in
a cash-and-stock transaction valued at $15.5 million, to focus
on its iron ore assets.

Under the proposed deal, 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 final

Also, Vancouver, British Columbia-based Northland, which
has iron assets in northern Sweden and Finland, will retain a 2
percent net smelter royalty, which can be bought back by Orex
at $4 million.

Orex, a silver and gold exploration company with projects
in Mexico, has also guaranteed to invest $3 million in the
projects in the first two years, Northland said in a statement.

Northland shares, which have nearly tripled in the last 1
year, closed at C$2.63 Tuesday on the Toronto Stock Exchange.
Shares of Orex Minerals closed at about 50 Canadian cents on
the Toronto Venture Exchange.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-Northland may sell Swedish non-core assets to Orex