Anglesey Mining plc’s 33% owned associate Labrador Iron Mines Holdings Limited (TSX:LIM) announces that it has filed a preliminary short form prospectus in connection with an overnight marketed public offering (the “Offering”) of LIM’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”).
LIM 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.
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 LIM’s mineral properties, 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 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 33% interest in Labrador Iron Mines (TSX:LIM). 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 / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700;
Emily Fenton / Jos Simson,
Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.