Anglesey Mining’s associate Labrador Iron Mines Holdings Limited (TSX:LIM) (the “Company” or “LIM”) (hitherto 41% owned) is pleased to announce that in connection with its previously announced overnight marketed public offering on April 4, 2011 (the “Offering”), it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including BMO Nesbitt Burns Inc., Jennings Capital Inc., Haywood Securities Inc. and Scotia Capital Inc. (the “Underwriters”) to sell 8,000,000 common shares (the “Common Shares”) at a price of C$12.50 per Common Share and 666,700 flow-through shares (the “FT Shares”, and together with the Common Shares, the “Underwritten Shares”) of the Company at a price of C$15.00 per FT Share for aggregate gross proceeds of C$110,000,500.
LIM has also granted 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 Common 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 of C$12.50 per share.
Anglesey Mining plc has not taken part in the equity financing. Following the issue of the Underwritten Shares Anglesey’s holding in LIM will represent 33.8% of LIM’s issued share capital; assuming the Over-Allotment Common Shares are also issued, Anglesey’s holding in LIM will be 33.1%.
LIM intends to use the net proceeds from the Offering for upgrades to and expansion of the Silver Yards plant, for payments under the recently announced rail transportation agreements, for exploration and development of its mineral projects, and for general corporate and working capital purposes.
The Offering is being made pursuant to a short form prospectus filed in each of the provinces of Canada other than Quebec. The Offered Securities are not 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.