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