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 share 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 the 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
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. 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