ANGLESEY MINING PLC: LIM equity financing
Anglesey Mining plc LSE:AYM
18 January 2013
LIM equity financing
* LIM confirms C$25.2 Million underwritten equity financing
* Supplementary private placing for Anglesey, subject to financing and other conditions
Anglesey Mining's 19.7% owned associate Labrador Iron Mines Holdings Limited (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 LIM (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 LIM and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of LIM 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.
LIM 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 C$3,780,000.
Anglesey is a major shareholder and insider of LIM which currently holds 19.2 million shares or approximately 19.5% of LIM's currently outstanding shares. Anglesey has agreed to purchase on a non-brokered private placement basis (the "Private Placement") up to 3,000,000 Units at a price of C$1.065 per Unit for gross proceeds to LIM of C$3,195,000, subject to certain conditions, including regulatory approvals described below. Completion of the Public Offering is not conditional on this Private Placement, and purchasers of Units under the Public Offering will not rely on the fact that Anglesey has agreed to increase its present investment in common shares of LIM.
LIM 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 LIM'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.
For further information, please visit LIM's website at www.labradorironmines.ca.
About Anglesey Mining plc
Anglesey currently holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which is producing high grade hematite from its James pit, one of LIM's twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.
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- Jan/21/2013 07:00 GMT