Trading Symbol
AIM: AYM
6th July 2022
Anglesey Mining
plc
(“Anglesey” or
“the Company”)
Strategic
investment by Scully Royalty into
Labrador Iron Mines
Anglesey Mining plc (AIM:AYM) is pleased to announce that
Labrador Iron Mines Holdings Limited (“LBRMF”) (OTC: LBRMF) has
announced a US$4,000,000 strategic
investment by New York Stock Exchange listed Scully Royalty Ltd
(“Scully”) (the “Strategic Investment”). Anglesey Mining holds 19.3
million shares in LBRMF, which will equate to 11.0% of the company
after the issuance of new shares to Scully Royalty Ltd.
- The Strategic Investment by Scully in LBRMF consists of a
US$3,000,000 equity component
alongside a US$1,000,000 convertible
credit facility. Pursuant to the equity investment, Scully will
hold approximately 7.4% of LBRMF on closing.
- The proceeds of the Strategic Investment will be used as
working capital to advance the Houston Project through a number of
initiatives, expected to culminate in a Preliminary Feasibility
Study (PFS) in 2023.
- These initiatives include:
- Negotiating an off-take agreement, with construction financing
and product sale components;
- Conducting metallurgical test work to refine product
characterization and specifications for marketing purposes;
and,
- Advancing commercial negotiations with construction
contractors, equipment vendors, rail, port and logistics
counterparties.
- Effective on Closing of the investment, Samuel Morrow, President and Chief Executive
Officer of Scully, will be appointed to the Labrador Iron Mines
Board of Directors.
- The Houston Preliminary Economic Assessment, released in
March 2021, demonstrated an
NPV8 of C$109m using a
conservative iron ore price of US$90/t with the project producing 2.0Mtpa of
high-grade direct shipping ore over a 12-yr life, a low capital
outlay and short lead-time.
Jo Battershill, Chief
Executive of Anglesey Mining, commented: “It is very
pleasing to see Labrador Iron Mines announce the Strategic
Investment from Scully. The inflow of funds is a key development to
help unlock the significant value of the Houston project, which has obvious benefits to
Anglesey shareholders. Scully is a very well credentialled
strategic investor with extensive iron ore mining experience and
relationships within the Labrador Trough.”
“The iron ore assets within Anglesey
have significant value and present strategic opportunities in
geopolitically safe and mining friendly jurisdictions. The
Grängesberg Iron Ore Project in Sweden, in which we hold a 20% direct interest
and 50% interest via a right of first refusal, is one of the
largest iron ore development opportunities within the EU and could
potentially supply up to 2.5Mtpa of high-grade iron ore concentrate
to European and Middle Eastern steel mills for at least
16-yrs.”
“We look forward to updating the
market with respect to the Grängesberg PFS update in the near
term.”
About Anglesey Mining plc
Anglesey Mining is traded on the AIM market of the London Stock
Exchange and currently has 248,070,732 ordinary shares on
issue.
Anglesey is developing its 100% owned Parys Mountain
Cu-Zn-Pb-Ag-Au deposit in North
Wales, UK with a 2020 reported resource of 5.2 million
tonnes at 4.3% combined base metals in the Indicated category and
11.7 million tonnes at 2.8% combined base metals in the Inferred
category.
Anglesey holds an almost 20% interest in the Grangesberg Iron
project in Sweden, together with
management rights and a right of first refusal to increase its
interest to 70%. Anglesey also holds 11% of Labrador Iron
Mines Holdings Limited, which through its 52% owned subsidiaries,
is engaged in the exploration and development of direct shipping
iron ore deposits in Labrador and
Quebec.
For further information, please
contact:
Anglesey Mining plc
Jo Battershill, Chief Executive –
Tel: +44 (0)7540 366000
John Kearney, Chairman – Tel: +1
647 728 4106
Davy
Nominated Adviser & Joint
Corporate Broker
Brian Garrahy / Lauren O’Sullivan
– Tel: +353 1 679 6363
WH Ireland
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666
Canaccord Genuity Limited
Joint Corporate Broker
James Asensio / Harry Rees – Tel: +44 (0) 20 7523 8000
Scout Advisory Limited
Investor Relations Consultant
Sean Wade – Tel: +44 (0) 7464
609025
LEI: 213800X8BO8EK2B4HQ71