Anglesey Mining plc is pleased to announce that it has reached an agreement with Intermine Limited to discharge all amounts due to Intermine and to buy out the Net Profits Royalty Agreement held by Intermine in respect of the Parys Mountain copper-lead-zinc property in North Wales.
Under the agreement Intermine will receive Canadian $1 million in cash (£630,000) and 2,000,000 ordinary shares in the company which will discharge all amounts due to Intermine and result in the cancellation of the existing Net Profits Royalty Agreement signed in May 1998. The amount recorded as due to Intermine in the accounts at 31 March 2012 was £759,680. When these arrangements are completed Intermine’s involvement in Parys Mountain and with the Anglesey Mining group will cease other than as a shareholder.
The agreement will relieve Anglesey of the requirement to make annual advance royalty payments to Intermine prior to the commencement of production and will eliminate all future royalties payable to Intermine from any mineral production at Parys Mountain.
The new ordinary shares of 1 pence each to be issued in respect of this transaction will rank pari passu with the existing ordinary shares of the company. The transaction is conditional on the admission of the new ordinary shares to the Official List and to trading on the London Stock Exchange’s main market. Application will be made for these shares to be admitted to both the Official List and to trading on the London Stock Exchange’s main market for listed securities and it is expected that such admission will become effective and dealings will commence on 30 July 2012.
Following the allotment of these new ordinary shares becoming unconditional, the issued ordinary share capital of the company will be 160,608,051 ordinary shares of 1 pence each with voting rights; there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the Financial Service Authority’s Disclosure and Transparency Rules.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total 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: RFC Ambrian +44 (0)2076 344700;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155