Trading Statement - Labrador Iron financing increased to C$35 million (GBP22.6 million)


 
TIDMAYM 
 
Anglesey Mining plc                LSE:AYM 
 
8 March 2010 
 
Labrador Iron financing increased to C$35 million (GBP22.6 million) 
 
Anglesey grants options over LIM shares for up to GBP2.9 million 
 
 
     Anglesey Mining plc is pleased to announce that its 50% owned associate 
     Labrador Iron Mines (LIM) arranged a $C35 million bought deal financing on 
     Friday 5 March 2010. This was in two stages the first of which was announced 
     by Anglesey on Friday, followed after the close of UK business by a $C10 
     million extension bringing the total to be raised to $C35 million. The 
     complete financing involves the issue of 5,406,000 LIM common shares at a 
     price of $C5.55 each together with 764,000 tax flow-through shares at 
     C$6.65 each. 
 
     In parallel with this increased LIM financing, Anglesey has granted an over- 
     allotment option to the underwriters to purchase up to 810,900 shares from 
     Anglesey's current LIM holding at $C5.55 each and if exercised in full this 
     will provide Anglesey with gross proceeds of C$4.5 million (GBP2.9 
     million). 
 
 
The bought deal is with a syndicate of Canadian underwriters led by Canaccord 
Financial Ltd. The increase in the offer is of 1,766,000 common shares at C$5.55 
per share from LIM's treasury, subject to receipt by LIM of all necessary 
regulatory approvals. Under the amended terms of the offering the underwriters 
have agreed to purchase an aggregate of 6,166,000 LIM shares for anticipated 
total gross proceeds of C$35,057,300 (GBP22.6 million). LIM plans to use the net 
proceeds from the offering for exploration and development of its mineral 
projects, and for general corporate and working capital purposes. 
 
In addition, Anglesey has increased the option granted to the underwriters to 
purchase LIM common shares from those already owned by Anglesey, up to an 
aggregate of 810,900 shares for the purpose of covering the underwriters' over- 
allocation position in respect of the LIM bought deal. These shares represent 
15% of the number of new shares being issued by LIM (excluding flow-through 
shares) and 4.4% of Anglesey's current holding in LIM of 18,600,000 shares. 
Following the LIM financing this potential share sale by Anglesey would reduce 
its holding in LIM by 1.9 percentage points. 
 
The price for the LIM shares under option is C$5.55 per share, for gross 
proceeds of up to C$4,500,495 (GBP2.9 million), The same terms and conditions as 
in respect of the LIM issue apply and the option is exercisable at any time in 
whole or in part up to 30 days after the date of the closing of the underwritten 
offering. 
 
The net proceeds from the sale of Anglesey's LIM shares will be used by Anglesey 
for general corporate costs and working capital purposes. 
 
 
Bill Hooley, Chief Executive of Anglesey said "We are very pleased that we are 
able to join with our associate company in this financing that provides LIM with 
additional capital to enable it to become a new force in the Canadian Iron ore 
business and that at the same time, if the option is exercised, will enable 
Anglesey to raise some necessary funding through the sale of a small portion of 
its holding in LIM. We would expect that this new cash injection will be 
sufficient for at least one year's requirements and that further sales of LIM 
shares are not contemplated at this time." 
 
Other terms and conditions including the filing of a short form prospectus in 
Toronto are unchanged. The underwritten offer is expected to close on or about 
25 March 2010. LIM has 37,203,951 common shares outstanding prior to the offer. 
 
 
The Offering is being made pursuant to a short form prospectus to be filed in 
the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New 
Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. The 
Offered Securities 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. 
 
 
Labrador Iron Mines Holdings Limited (LIM) 
 
LIM's Schefferville area project involves the exploration and development of 
direct shipping iron ore deposits in western Labrador and north eastern Quebec 
near Schefferville. LIM's properties are part of the historic Schefferville area 
iron ore district where mining of adjacent deposits was previously carried out 
by the Iron Ore Company of Canada from 1954 to 1982. LIM plans to mine its 
deposits in varying stages, the first stage comprising the James and Redmond 
deposits, which are located in Labrador in close proximity to existing 
infrastructure. Subject to timely receipt of all permits and licences, iron ore 
production is planned to commence in the summer of 2010. 
 
 
About Anglesey Mining 
 
Anglesey Mining plc is a UK based company listed on the London Stock Exchange 
which currently holds 18,600,000 shares in Labrador Iron Mines Holdings Limited. 
The company also holds the Parys Mountain base metals project with a 
historical resource of 7.7 million tonnes at 9.3% combined copper, lead and zinc 
in Anglesey, UK. 
 
 
For further information contact 
Bill Hooley, Chief Executive 01492-541981 
Ian Cuthbertson, Finance Director 01248 361333 
Emily Fenton/Charlie Geller, Conduit PR 020 7429 6666
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024