LIM finalises joint venture agreement with Tata to develop Howse deposit
$30 million cash injection into LIM
Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (LIM) has today announced that the previously announced joint venture agreement with Tata Steel Minerals Canada Ltd. (“TSMC”) for the exploration and development of LIM’s Howse iron ore deposit in the Schefferville region of the Labrador Trough has been finalised.
The Howse Deposit is located in Labrador about 25 kilometres north of LIM’s currently producing James Mine and Silver Yards processing facility and adjacent to TSMC’s Timmins Area mines and new processing plant. The Howse Deposit has a historical resource of 28 million tonnes at a grade of 58% Fe (natural basis).
Under the terms of the joint venture agreement, TSMC and LIM have agreed to form an unincorporated joint venture pursuant to which Howse Minerals Limited, a wholly owned subsidiary of TSMC has acquired an initial 51% participating interest in the Howse Property for a total cash consideration of $30 million. “Completion of the Howse joint venture agreement with TSMC is an important step forward for LIM and will significantly fast track the development timeline for this new mine” commented John Kearney, LIM’s Chairman and Chief Executive Officer. “We are very pleased to be co-operating with Tata Steel, one of the world’s major steel companies, in this venture and we look forward to working with TSMC to advance the Howse project into production.”
As part of the strategic relationship between LIM and TSMC that was announced on March 12, 2013, the two companies have been co-operating with each other in various aspects of their respective iron ore operations in the Labrador Trough. The strategic relationship includes multi-part co-operation agreements in areas of logistics, property rationalisation and various ancillary mutual support and potential off-take arrangements.
As part of the logistics agreements, the companies have formalised arrangements for construction of the new rail line that will extend LIM’s current rail line from Silver Yards to TSMC’s new Timmins Area processing plant and thus connect both companies to the TSH main rail line.
The construction of the rail line between TSMC’s Timmins Area processing plant to LIM’s Silver Yard is already underway. Pending the construction of the new rail line to the Timmins Area plant, TSMC is loading iron ore trains at LIM’s Silver Yards rail facility and the two companies are sharing iron ore rail cars and rail locomotives.
For the full LIM press release with further details of the joint-venture please see LIM’s release today on its website at www.labradorironmines.ca
About Labrador Iron Mines Holdings Limited (LIM)
Labrador Iron Mines (LIM) is Canada’s newest iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. LIM has commenced its third year of operations and is targeting 1.7 million tonnes of saleable iron ore production in 2013.
About Anglesey Mining plc
Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from its James mine, one of LIM’s direct shipping iron ore deposits in western Labrador and north-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 JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 6539881;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;
Emily Fenton/Jos Simson: Tavistock Communications +44 (0)20 7920 3155.