Anglesey Mining Regulatory News (AYM)

5 Apr 2011 10:02

Anglesey Mining plc LSE:AYM

4 April 11

LIM announces equity financing in Canada

Anglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited (the "Company" or "LIM") is pleased to announce that it has filed a preliminary short form prospectus in connection with an overnight marketed public offering (the "Offering") of the Company's common shares ("Common Shares") and flow-through common shares (the "FT Shares", and together with the Common Shares the "Underwritten Shares"). The Offering will be conducted through a syndicate of underwriters led by Canaccord Genuity Corp. (the "Underwriters"). The Company will also grant the Underwriters an over-allotment option to purchase up to that number of additional common shares (the "Over-Allotment Common Shares", and together with the Common Shares and FT Shares, the "Offered Securities") equal to 15% of the Underwritten 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.

The Company intends to use the net proceeds from the Offering for upgrades to and expansion of the Silver Yards plant, payments under the recently announced rail transportation agreements, for exploration and development of the Company's mineral projects, and for general corporate and working capital purposes.

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.

About Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. The 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 contemplates mining in stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure, and for which all operating permits have been issued and plant construction and mine development is nearing completion.

For further information, please view the Company's website at www.labradorironmines.ca.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in Labrador Iron Mines . In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981

Ian Cuthbertson, Finance Director +44 (0) 1248 361333

Emily Fenton / Charlie Geller,Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035