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Over-allotment option exercised in full
TORONTO, Feb. 13, 2013 /CNW/ - Labrador Iron Mines Holdings Limited ("LIM" or
the "Company") (TSX:LIM) announces that it has completed its previously
announced public offering (the "Offering"), including the full amount of the
over-allotment option, for aggregate gross proceeds of C$28,980,000.
A total of 27,600,000 units of the Company (the "Units"), including those
issued pursuant to the exercise of the over-allotment option, were issued and
sold at a price of C$1.05 per Unit (the "Offering Price"). Each Unit
consists 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 Offering. The
warrants have been listed on the Toronto Stock Exchange and will trade under
the symbol LIM.WT.
The Offering was completed by a syndicate of underwriters led by Canaccord
Genuity Corp. and included RBC Dominion Securities Inc., Scotia Capital Inc.,
Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Raymond James
Ltd. (collectively, the "Underwriters").
The Company intends to use the net proceeds from the Offering to fund
pre-stripping, mining, and processing costs, including payments to LIM's
mining contractors, and transportation costs in connection with the seasonal
resumption of production operations in April 2013; and to supplement working
capital and general and administrative costs for the remaining winter season.
The Company issued 27,600,000 common shares pursuant to the Offering and now
has 126,200,807 common shares outstanding after giving effect to the Offering.
The Offering was made pursuant to a short form prospectus filed in each of the
provinces of Canada other than Quebec.
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
LIM is currently the only independently-owned Canadian iron ore producer
listed on the Toronto Stock Exchange and trades under the symbol LIM.
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.
For further information, please visit LIM's website
atwww.labradorironmines.ca 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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