Northland Resources SA (TSE:NAU) (PINK:NRSRF) stock price tries to stay above the support at $1.49 per share, and it’s been doing quite good thus far. This is important as the stock had a small correction recently as a result of a large scale rally that happened over the past half a month.
The trading volumes stayed below the 90-day average for a whole rally and didn’t depict more interest when the rally stopped, thus the further action is hard to predict at this stage. Consolidation seems possible considering the latest news was promising and the stock price had consolidated around this same area in September through November 2011.
The stock price has been trending up since the company signed an agreement with Standard bank of South Africa ltd for a short-term bridge loan of $50 million. This type of loan will be used until some permanent financing is secured. The company intends to do this during the first quarter of 2012.
The company needs cash to develop its iron ore projects in Sweden and Finland. Construction works on the Kaunisvaara project in Sweden should be completed by the fourth quarter of 2012 when production is planned to start. Hannukainen project in Finland still has to undergo a definitive feasibility study with results expected during the first quarter of 2012.
The company actively reports the progress it makes when developing Kaunisvaara, thus keeping traders excited.
