21 Jan 2013 07:00
ANGLESEY MINING PLC - LIM equity financingANGLESEY MINING PLC - LIM equity financing
PR Newswire
London, January 20
Anglesey Mining's 19.7% owned associate Labrador Iron Mines Holdings Limited(TSX:LIM) reports that in connection with its previously announced amendedovernight marketed public offering on January 17, 2013 (the "Public Offering"),it has entered into an underwriting agreement with a syndicate of underwritersled by Canaccord Genuity Corp. and including RBC Dominion Securities Inc.,Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Jennings CapitalInc. and Raymond James Ltd. (the "Underwriters") to sell 24,000,000 units ofLIM (the "Units") at a price of C$1.05 per Unit (the "Offering Price") foraggregate gross proceeds of C$25,200,000. Each Unit will consist of one commonshare of LIM and one-half of one common share purchase warrant. Each warrantwill entitle the holder to purchase one common share of LIM at an exerciseprice of C$1.35 per common share for a period of 36 months following the dateof closing of the Public Offering.
LIM has also granted the Underwriters an over-allotment option to purchase upto 3,600,000 additional Units (in whole or in part), exercisable at any time upto 30 days after and including the closing of the Public Offering at theOffering Price for additional gross proceeds of up to C$3,780,000.
Anglesey is a major shareholder and insider of LIM which currently holds 19.2million 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 forgross proceeds to LIM of C$3,195,000, subject to certain conditions, includingregulatory approvals described below. Completion of the Public Offering is notconditional on this Private Placement, and purchasers of Units under the PublicOffering will not rely on the fact that Anglesey has agreed to increase itspresent investment in common shares of LIM.
LIM intends to use the net proceeds from the Public Offering to fundpre-stripping, mining, and processing costs, including payments to LIM's miningcontractors, and transportation costs, including tariff payments to TSH and QNS&L, in connection with the seasonal resumption of production operations inApril 2013; capital and infrastructure expenditures on the Silver Yardsprocessing plant including the connection to hydro power; and to supplementworking capital and general and administrative costs for the remaining winterseason. Proceeds from the Private Placement are intended to be used tosupplement LIM's working capital and for general corporate purposes.
The Public Offering is scheduled to close on or about February 5, 2013 and issubject to certain conditions including, but not limited to, the receipt of allnecessary approvals including the approval of the Toronto Stock Exchange andthe securities regulatory authorities. Closing of the Private Placement issubject to several conditions which include (i) all necessary regulatoryapprovals being obtained including that of the Toronto Stock Exchange; (ii)Anglesey securing financing to fund the subscription price; and (iii) thecompletion of the Public Offering. It is anticipated that this PrivatePlacement will close contemporaneously with or no later than 30 days after theclosing of the Public Offering.
For further information, please visit LIM's website atwww.labradorironmines.ca.
About Anglesey Mining plc
Anglesey currently holds 19.7% of Toronto-listed Labrador Iron Mines HoldingsLimited (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 andnorth-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 JORCCode-compliant resource of 2.1mt at 6.9% combined base metals in the indicatedcategory and 4.1mt at 5.0% combined in the inferred category was published inNovember 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