LIM Announces C$25.2 Million Underwritten Equity Financing

TORONTO, Jan. 18, 2013 /CNW/ - Labrador Iron Mines Holdings Limited ("LIM" or 
the "Company") (TSX:LIM) reports that in connection with its previously 
announced amended overnight marketed public offering on January 17, 2013 (the 
"Public Offering"), it has entered into an underwriting agreement with a 
syndicate of underwriters led by Canaccord Genuity Corp. and including RBC 
Dominion Securities Inc., Scotia Capital Inc., Macquarie Capital Markets 
Canada Ltd., Jennings Capital Inc. and Raymond James Ltd. (the "Underwriters") 
to sell 24,000,000 units of the Company (the "Units") at a price of C$1.05 per 
Unit (the "Offering Price") for aggregate gross proceeds of C$25,200,000. Each 
Unit will consist of one common share of the Company and one-half of one 
common share purchase warrant. Each warrant will entitle the holder to 
purchase one common share of the Company at an exercise price of C$1.35 per 
common share for a period of 36 months following the date of closing of the 
Public Offering. 
The Company has also granted the Underwriters an over-allotment option to 
purchase up to 3,600,000 additional Units (in whole or in part), exercisable 
at any time up to 30 days after and including the closing of the Public 
Offering at the Offering Price for additional gross proceeds of up to 
Anglesey Mining plc ("Anglesey"), a major shareholder and insider of the 
Company which currently holds 19.2 million shares or approximately 19.5% of 
the Company's currently outstanding shares, has agreed to purchase on a 
non-brokered private placement basis (the "Private Placement") an aggregate of 
3,000,000 Units at a price of C$1.065 per Unit for gross proceeds of 
C$3,195,000, subject to certain conditions, including regulatory approvals 
described below. Completion of the Public Offering is not conditional on the 
Private Placement, and purchasers of Units under the Public Offering should 
not rely on the fact that Anglesey has agreed to increase its present 
investment in common shares of LIM. 
The Company intends to use the net proceeds from the Public Offering to fund 
pre-stripping, mining, and processing costs, including payments to LIM's 
mining contractors, and transportation costs, including tariff payments to TSH 
and QNS&L, in connection with the seasonal resumption of production operations 
in April 2013; capital and infrastructure expenditures on the Silver Yards 
processing plant including the connection to hydro power; and to supplement 
working capital and general and administrative costs for the remaining winter 
season. Proceeds from the Private Placement are intended to be used to 
supplement the Company's working capital and for general corporate purposes. 
The Public Offering is scheduled to close on or about February 5, 2013 and is 
subject to certain conditions including, but not limited to, the receipt of 
all necessary approvals including the approval of the Toronto Stock Exchange 
and the securities regulatory authorities. Closing of the Private Placement is 
subject to several conditions which include (i) all necessary regulatory 
approvals being obtained including that of the Toronto Stock Exchange; (ii) 
Anglesey securing financing to fund the subscription price; and (iii) the 
completion of the Public Offering. It is anticipated that this Private 
Placement will close contemporaneously with or no later than 30 days after the 
closing of the Public Offering. 
The Public Offering is being made pursuant to a short form prospectus filed in 
each of the provinces of Canada other than Quebec. The Units sold pursuant to 
the Public Offering will not be registered under the U.S. Securities Act of 
1933, as amended, and may not be offered or sold in the United States absent 
registration or an applicable exemption from the registration requirements. 
This press release does not constitute an offer of securities for sale in the 
United States. The securities being offered have not been, nor will be, 
registered under the United States Securities Act of 1933, as amended, and may 
not be offered or sold within the United States absent U.S. registration or an 
applicable exemption from U.S. registration requirements. 
About Labrador Iron Mines Holdings Limited (LIM) 
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 386,000 dry tonnes of iron ore recorded in the 
first start-up year. The first full production season commenced in April 2012 
and LIM sold ten shipments totalling approximately 1.6 million dry tonnes of 
iron ore. The tenth shipment was sold at the end of November and contained 
103,000 dry tonnes of iron ore. 
The James Mine is connected by a direct rail link to the Port of Sept-Îles, 
Québec. The project also benefits from established infrastructure including 
the town, airport hydro power and railway service. Starting with the James 
Mine and leading to the development of the expanding Houston flagship project, 
our 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 
of Schefferville. 
LIM is currently the only independently-owned Canadian iron ore producer 
listed on the Toronto Stock Exchange and trades under the symbol LIM. 
Cautionary Statements: 
Some of the statements contained in this Press Release may be forward-looking 
statements which involve known and unknown risks and uncertainties relating 
to, but not limited to, the Company's expectations, intentions, plans and 
beliefs. Forward-looking information can often be identified by 
forward-looking words such as "anticipate", "believe", "expect", "goal", 
"plan", "intend", "estimate", "may" and "will" or similar words suggesting 
future outcomes, or other expectations, beliefs, plans, objectives, 
assumptions, intentions or statements about future events or performance. 
Forward-looking information may include reserve and resource estimates, 
estimates of future production, unit costs, costs of capital projects and 
timing of commencement of operations, and is based on current expectations 
that involve a number of business risks and uncertainties. Factors that could 
cause actual results to differ materially from any forward-looking statement 
include, but are not limited to, failure to establish estimated resources and 
reserves, the grade and recovery of ore which is mined varying from estimates, 
capital and operating costs varying significantly from estimates, delays in 
obtaining or failures to obtain required governmental, environmental or other 
project approvals, delays in the development of projects, changes in exchange 
rates, fluctuations in commodity prices, inflation and other factors. 
Forward-looking statements are subject to risks, uncertainties and other 
factors that could cause actual results to differ materially from expected 
results. There can be no assurance that the Company will be successful in 
maintaining any agreement with any First Nations groups who may assert 
aboriginal rights or may have a claim which affects the Company's properties 
or may be impacted by the Schefferville Projects. Shareholders and 
prospective investors should be aware that these statements are subject to 
known and unknown risks, uncertainties and other factors that could cause 
actual results to differ materially from those suggested by the 
forward-looking statements. Shareholders and prospective investors are 
cautioned not to place undue reliance on forward-looking information. By its 
nature, forward-looking information involves numerous assumptions, inherent 
risks and uncertainties, both general and specific, that contribute to the 
possibility that the predictions, forecasts, projections and various future 
events will not occur. The Company undertakes no obligation to update publicly 
or otherwise revise any forward-looking information whether as a result of new 
information, future events or other such factors which affect this 
information, except as required by law. 
please visit LIM's website or contact: 
John F. Kearney Chairman and Chief Executive Officer Tel: (647) 728-4105 
Rodney Cooper President and Chief Operating Officer Tel: (647) 729-1287 
Keren Yun Vice President, Investor Relations and Communications Tel: (647) 
SOURCE: Labrador Iron Mines Holdings Limited 
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CO: Labrador Iron Mines Holdings Limited
ST: Ontario
-0- Jan/18/2013 15:44 GMT
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