ANGLESEY MINING PLC: LIM C$30 million financing - Anglesey subscribes C$1.5m
Anglesey Mining plc LSE:AYM
6 November 2012
LIM C$30 million financing closes - Anglesey subscribes C$1.5 million
Anglesey Mining plc is pleased to announce that its associate Labrador Iron
Mines Holdings Limited (TSX:LIM) has completed its previously announced bought
deal public offering of C$30,000,000 in common shares of LIM at a price of
C$1.00 per common share. Canaccord Genuity Corp. acted as the sole underwriter.
Anglesey further announces that it has participated in the financing by the
purchase of 1,500,000 LIM common shares priced at C$1.00 each for a total
consideration of C$1,500,000 (approximately £935,000). The funds for this
purchase have come from Anglesey's working capital. The Anglesey directors
believe that its remaining working capital will be sufficient to sustain
Anglesey and to finance the completion of the scoping study on the Parys
Mountain project which is currently in progress.
LIM issued 30,000,000 common shares pursuant financing and now has
97,763,307 common shares outstanding. Following this issue and the acquisition
of new LIM common shares, Anglesey holds 19,289,100 LIM shares which represent
19.7% of the increased capital of LIM.
LIM intends to use the net proceeds from the financing for working capital and
general corporate purposes.
LIM has also granted the underwriter an over-allotment option to purchase up to
4,500,000 additional common shares, exercisable at any time for a period of 30
days after and including the closing date of the financing, at a price equal to
the offering price of C$1.00 per common share.
Anglesey has made this investment because it believes that LIM has a very
positive future given its high grade resource base, substantial infrastructure,
the recovering iron ore price and its first independent producer status in the
Labrador Trough; further Anglesey wishes to maintain a significant as possible
stake in LIM to ensure that it is involved in any future developments by LIM.
Bill Hooley, Chief Executive of Anglesey said "We are pleased to participate in
this financing which has permitted our holding in LIM, which we believe to be
significant and strategic, to be maintained as high as possible. However at
just under 20% we are no longer restricted by many Canadian regulations and we
are freer to deal our position if considered prudent. We will continue use our
strategic position in LIM to ensure the best possible outcome for Anglesey
shareholders and we have no current intention of reducing this holding. We have
retained sufficient funds in Anglesey to complete work on the current resource
estimate and Scoping Study on Parys Mountain and to move that project forward.
We also continue to look at potential projects throughout the world that match
our development criteria."
It is anticipated that there will be no change in Anglesey's treatment of its
investment in LIM in the financial statements as a result of the transactions
and LIM will continue to be accounted for as an associate.
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines (LIM) is Canada's newest iron ore producer with a portfolio
of direct shipping (DSO) iron ore operations and projects located in the
prolific Labrador Trough. Initial production commenced at the James Mine in
June 2011, with the sale of 400,000 tonnes of iron ore recorded in the first
start-up year. The first full production season commenced in April 2012, with
nine cape-size shipments totalling approximately 1,456,000 dry tonnes of iron
ore sold in the seven months ended October 31, 2012.
The James Mine is connected by a direct rail link to the Port of Sept-Iles,
Québec. The project also benefits from established infrastructure including
town, airport, hydro power and railway service. Starting with the James Mine
and leading to the development of the expanding Houston flagship project, LIM's
objective is to provide shareholders with long-term value with a plan to
increase production towards 5 million tonnes per year from a portfolio of 20
iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town
LIM is currently the only independently-owned Canadian iron ore producer listed
on the Toronto Stock Exchange and trades under the symbol LIM. For further
information see www.labradorironmines.ca.
About Anglesey Mining plc
Anglesey now holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited
which is producing iron ore from its James deposit, one of LIM's twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100%
owned Parys Mountain zinc-copper-lead deposit in North Wales, UK.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)20 3440 6800;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155
-0- Nov/06/2012 13:48 GMT
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