Last checked at 20 Mar 2012 14:47
Anglesey Mining plc LSE:AYM
20 March 2012
LIM completes C$71.6 million equity financing
Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited announced today that it has completed its previously announced public offering of C$60,950,000 in common shares and C$10,675,000 in flow-through shares of LIM, at a price of C$5.30 per common share and C$6.10 per flow-through share (collectively, the "Offering").
The Offering was completed by a syndicate of underwriters led by Canaccord Genuity Corp. and included Jennings Capital Inc., Octagon Capital Corp., RBC Capital Markets, Haywood Securities Inc., Scotia Capital Inc., Paradigm Capital Inc. and Raymond James Ltd. (collectively, the "Underwriters").
LIM intends to use the net proceeds from the Offering for upgrades and expansion of its Silver Yards project, additional rail equipment and upgrades of its transportation infrastructure, development of its Houston project, exploration of mineral properties and for general corporate and working capital purposes.
LIM issued 11,500,000 common shares and 1,750,000 flow-through shares pursuant to the Offering and now has 67,323,307 common shares outstanding after giving effect to the Offering.
LIM has also granted the Underwriters an over-allotment option to purchase up to 1,725,000 additional common shares, 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 of C$5.30 per share.
The Offering was made pursuant to a short form prospectus filed in each of the provinces of Canada other than Quebec.
Following the completion of the Offering (but not the over-allotment option) the interest of Anglesey Mining plc in the share capital of LIM has been reduced to 26.4%. Fully diluted and including the over-allotment option the interest would be 24.9%.
About Labrador Iron Mines Holdings Limited (LIM)
LIM is engaged in the production and development of its 100% owned Schefferville Area direct shipping iron ore (DSO) properties in the Labrador Trough of western Labrador and north-eastern Quebec. LIM commenced production from the James Mine in June 2011, following the successful construction and commissioning of the mine and Silver Yards processing plant earlier in the year, and recorded its first sales of iron ore in the fall of 2011.
LIM contemplates mining in stages. The first phase of Stage 1 comprises the James Mine and the Silver Yard processing plant which is connected by a rail spur to the main Schefferville to Sept-Iles railway. Through a phased expansion program, LIM plans to grow its iron ore production through the subsequent development of adjacent deposits. Stage 2 comprises the development of the Houston deposits, which is currently undergoing environmental assessment and planning.
About Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its 26% interest in Labrador Iron Mines . In addition to any new projects that may be brought forward Anglesey 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;
Samantha Harrison / Klara Kaczmarek, Ambrian Partners Limited +44 (0) 2076 344700;
Emily Fenton / Jos Simson,
Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.
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