Anglesey Mining PLC LIM announces equity financing


 
TIDMAYM 
 
Anglesey Mining plc LSE:AYM 
 
17 January 2013 
 
LIM Announces Equity Financing 
 
Anglesey Mining's 19.7% owned associate Labrador Iron Mines Holdings Limited 
(TSX:LIM) announces that it has filed a preliminary short form prospectus in 
connection with an overnight marketed public offering (the "Offering") of 
common shares in LIM ( "Common Shares"). The Offering will be conducted through 
a syndicate of underwriters led by Canaccord Genuity Corp. (the 
"Underwriters"). LIM will also grant the Underwriters an over-allotment option 
to purchase up to that number of additional common shares (the "Over-Allotment 
Common Shares") equal to 15% of the Common Shares sold pursuant to the 
Offering, exercisable at any time up to 30 days after and including the closing 
of the Offering at a price equal to the offering price of the Common Shares. 
 
The Offering will be priced in the context of the market with final terms of 
the Offering to be determined at the time of pricing. 
 
LIM intends to use the net proceeds from the Offering to fund mining, 
processing and inventory costs, including payments to the LIM's mining 
contractors, and transportation costs in connection with the resumption of 
production operations and to supplement working capital and general and 
administrative costs for the remaining winter season. 
 
For the 2012 operating season LIM met its reduced 2012 production target of 1.7 
million wet tonnes of iron ore production and sold a total of 1.56 million dry 
tonnes of iron ore products. LIM sold two cape-size shipments in October for 
approximately 322,000 dry tonnes, the sales proceeds of one of which were 
received in October and one final shipment of lump ore of approximately 103,000 
tonnes, the sales proceeds of which remained receivable as at December 31, 2012 
and were received in January 2013. 
 
LIM expects to report revenue from iron ore sales of approximately $23 million 
for the quarter ended December 31, 2012, and approximately $94 million for the 
nine month period ended December 31, 2012. As at December 31, 2012, LIM had 
cash of approximately $10 million and expects to be in a positive working 
capital position as at that date. 
 
For 2013 and following years, operations will be focused on LIM's Stage 1 
deposits including the James Mine (currently operating) and six smaller 
satellite deposits and some historical stockpiles located within a 15 km radius 
of the James Mine and the Silver Yards processing plants. LIM is currently 
targeting production for the 2013 season at a similar level as in 2012 of 
between 1.7 million and 2 million wet tonnes of iron ore produced. 
 
In resuming its planned seasonal mining operations in the spring of 2013, for 
its 2014 fiscal year, LIM will incur regular operating, mining and 
transportation expenses for the months of April and May, 2013 before receipt of 
payment for its first sales of iron ore anticipated in June 2013 and will 
require working capital of approximately $40 million to fund these operating 
and re-start expenses. 
 
LIM has been actively pursuing working capital financing arrangements for the 
seasonal start-up of operations in the first quarter of its 2014 fiscal year 
(April to June 2013). Such financings may include an operating line of credit 
or product off-take arrangements or a combination of these alternatives. 
However, while a number of institutions have provided term sheets for 
financings in the range of $20 to $40 million, subject to various conditions, 
and undertaken due diligence, at the present time there can be no assurance 
that such financing can be fully completed by the beginning of the 2013 
operating season. Accordingly, LIM is pursuing the Offering to ensure no delay 
in the orderly seasonal resumption of operations in April 2013. 
 
LIM's preliminary operating results for the quarter ended December 31, 2012 and 
for the nine months ended December 31, 2012 are outlined in the table below. 
 
                         Quarter Ended December Nine Months Ended December 
                                31, 2012                 31, 2012 
 
(all tonnes are dry         Tonnes   Grade % Fe       Tonnes   Grade (% Fe) 
metric tonnes) 
 
Total Ore Mined            198,467        59.9%    1,828,398          61.3% 
 
Direct Rail Ore portion    159,637        60.9%    1,212,870          62.3% 
 
Waste Mined                224,548           --    3,127,158             -- 
 
Ore Processed and          183,635        59.8%      954,813          58.2% 
Screened 
 
Lump Ore Produced           18,082        64.6%       98,693          61.2% 
 
Sinter Fines Produced      149,698        61.4%      693,173          61.4% 
 
Total Product Railed       254,136        61.8%    1,492,960          62.3% 
 
Tonnes Product Sold        425,472        62.0%    1,559,620          62.5% 
 
Port Product Inventory     111,009        60.9%      111,009          60.9% 
 
Site Product Inventory       3,551        58.4%        3,551          58.4% 
 
Site Run-of-Mine Ore       446,975        56.2%      446,975          56.2% 
inventory 
 
The Offering is being made pursuant to a short form prospectus to be filed in 
each of the provinces of Canada other than Quebec. 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. 
 
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. 
 
For further information, please visit LIM's website at 
www.labradorironmines.ca 
 
 
About Anglesey Mining plc 
 
Anglesey 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 
 
 
 
END
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