LIM conference call rescheduled to July 3, 2013

Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) has rescheduled its fiscal 2013 year-end conference call to July 3, 2013 at 11:00 am.

LIM will file its fiscal 2013 audited Financial Statements, Management’s Discussion and Analysis (MD&A), Annual Information Form (AIF), and Technical Reports on Tuesday, July 2, 2013, on SEDAR (www.sedar.com), in accordance with regulatory year-end filing requirements.

The dial-in information for this call remains the same as previously reported:  +1 (647) 427-7450  or  +1 (888) 231-8191 .

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 1.75 to 2.0 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 pit, 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;

Ian Cuthbertson, Finance Director +44 (0)1248 361333;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton/Jos Simson:  Tavistock Communications +44 (0)20 7920 3155.

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LIM – Elizabeth taconite resource

Estimated 620 million tonne resource at Elizabeth No. 1 taconite deposit

Additional potential of 350 to 600 million tonnes in Elizabeth No. 2

Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (LIM) has announced that its exploration efforts over the past two years have identified a large iron orebody hosted within its 100%-owned Elizabeth Taconite Project, leading to an independent National Instrument 43-101 (“NI 43-101”) inferred mineral resource estimate of 620 million tonnes and exploration potential of 350 to 600 million tonnes.

The Elizabeth Project is located in Western Labrador, approximately four kilometres (“km”) west of LIM’s currently producing James Mine, alongside existing infrastructure, including roads, rail bed and power line corridor.

In 2011 and 2012, LIM identified two parallel deposit areas at the Elizabeth Project by conducting airborne and ground geophysics over the region. LIM’s exploration drilling in 2012 was successful in defining an inferred mineral resource at Elizabeth No. 1 by completing five, HQ-sized diamond drill holes totalling 1,728 metres. Exploration drilling was also successful in identifying exploration potential in Elizabeth No.2, which is oriented in a parallel zone located immediately to the southwest of Elizabeth No.1.

Elizabeth Taconite Project Highlights

  • A total inferred mineral resource of 620 million tonnes at 31.8% Fe has been estimated within Elizabeth No. 1.
  • A potential 350 million to 600 million tonnes at 31.9% Fe has been estimated in Elizabeth No. 2 .
  • The initial Elizabeth target measures approximately four km long and is made up of magnetite and hematite dominant zones. There is significant potential for resource expansion, as the deposit remains open along strike to the northwest and southeast.
  • Results from Davis Tube test work have been extremely positive, indicating concentrate grades of greater than 68.8% Fe in the magnetite zones.
  • The Elizabeth Project is situated next to the former producing Wishart mine, alongside existing roads, rail bed and power line corridor and is within five km of the town of Schefferville.  LIM’s current direct shipping iron ore operations are located four km from the Elizabeth Project, with direct rail access to the Port of Sept-Îles.
  • Airborne and ground geophysics have also highlighted the Gagnon taconite target, located in Québec, a few km from the Elizabeth Project.

For further details of these new resources 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 1.75 to 2.0 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 pit, 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;

Ian Cuthbertson, Finance Director +44 (0)1248 361333;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton/Jos Simson:  Tavistock Communications +44 (0)20 7920 3155.

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LIM – First iron ore shipment for 2013

Commissioning of Silver Yards Phase 3

Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (LIM) has made its first shipment of iron ore for 2013. The JK Pioneer, a Cape-size vessel carrying 174,360 wet metric tonnes of LIM iron ore, has sailed from the port of Sept-Îles, bound for China.

LIM’s first shipment consisted of sinter fines largely comprised of stockpiled material at the mine site and some port inventory, at a planned average grade of about 58% iron (“Fe”). Subsequent shipments during 2013 will be sinter fines and lump ore at a planned average grade of approximately 62% Fe. These shipments will consist of iron ore from the James Mine, made up of a mixture of higher grade dry screened ore and lower grade material that will be upgraded at the Silver Yards wet processing plant.  Total saleable iron ore production in 2013 is expected to be between 1.75 to 2.0 million tonnes.

In May 2013, LIM signed a new two-year iron ore sales agreement with the Iron Ore Company of Canada (“IOC”) for the sale of all of LIM’s iron ore production for the next two calendar years 2013 and 2014. IOC has entered into an iron ore off-take agreement with RB Metalloyd Limited (“RBM”) under which RBM has agreed to buy LIM’s iron ore from IOC on a FOB Sept-Îles basis. Under LIM’s new sales agreement, IOC will pay for the iron ore progressively, as the ore is resold, with the price calculation based on the monthly average of the market index, adjusted for product quality specification, premiums or penalties and after ocean freight and IOC’s price participation.

The Silver Yards wet processing plant has restarted for the 2013 year and includes the Phase 3 upgrade and expansion which is now being commissioned. The wet plant will ramp up to its design capacity by the end of June and will operate in conjunction with the dry plant, which has been processing iron ore since April.

John Kearney, Chairman and Chief Executive of Labrador Iron Mines, stated “We are happy to report that LIM’s first shipment of 2013 has sailed and that production is ramping up largely on schedule, despite difficult weather conditions that prevailed in the Schefferville area during April and May. Now that the Silver Yards wet plant is operating, we expect to accelerate our production, railing and shipping and look forward to a solid year of operations.”

***

LIM will be releasing its March 2013 fourth quarter and year-end results on Thursday, June 27, 2013. Members of the senior management team will host a conference call and webcast on Thursday, June 27, 2013 at 11:00 am (Toronto Time) to discuss the results. See LIM’s website for further details.

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 1.75 to 2.0 million tonnes of saleable iron ore production in 2013.

For further information, please visit LIM’s website at www.labradorironmines.ca

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital. Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, 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;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;
Emily Fenton / Jos Simson:  Tavistock Communications +44 (0)20 7920 3155

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LIM – 33% increase in year-end mineral resource

Stage 2 Mineral Resources Double to 40.6 Million Tonnes

Anglesey Mining’s 15% held associate Labrador Iron Mines Holdings Limited (TSX: LIM) has today updated its NI 43-101 mineral resource as at its fiscal year-end March 31, 2013 for the Schefferville/Menihek direct shipping iron ore (“DSO”) operations and projects located in Western Labrador and Quebec.

  • At March 31, 2013, LIM’s total measured and indicated mineral resource (excluding stockpiles) was estimated at 59.5 million tonnes grading 56.7% iron (“Fe”), a 33% increase from March 31, 2012.
  • The measured and indicated resource for the Houston 1, 2 and 3 deposits increased to 31.3 million tonnes grading 57.5% Fe, a 37% increase over 2012.
  • A new measured and indicated mineral resource estimate was calculated for the Malcolm-1 deposit, located adjacent to the Houston deposits, totalling 9.2 million tonnes grading 57.8% Fe. This represents a significant increase over the historical estimate of 2.9 million tonnes grading 56.2% Fe1.
  • Overall, the Stage 2 Houston and Malcolm deposits are estimated to contain 40.6 million tonnes of measured and indicated resource grading 57.6% Fe.
  • The mineral resource for LIM’s Stage 1 Silver Yards deposits decreased to 18.9 million tonnes grading 54.9% Fe, from 21.7 million tonnes grading 55.7% Fe in 2012, due to mine depletion and reconciliation at the James Mine.
  • An initial mineral resource was estimated for selected historical stockpiles, totalling 3.5 million tonnes of indicated resource grading 49.1% Fe and 2.9 million tonnes of inferred resource grading 48.8% Fe.

In addition to the NI 43-101 compliant resource estimates mentioned in this press release, a significant amount of historical resources have been defined on LIM’s properties by the Iron Ore Company of Canada (“IOC”) during its historical operations in the area.

For further information on resource calculation methods and resource tables please see 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. Initial production commenced at the James Mine in June 2011. LIM has commenced its third year of operations and is targeting 1.75 to 2.0 million tonnes of saleable iron ore production in 2013.

For further information, please visit LIM’s website at www.labradorironmines.ca

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital. Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, 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;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;
Emily Fenton / Jos Simson:  Tavistock Communications +44 (0)20 7920 3155

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LIM signs new sales and off-take agreements

14 May 2013        LSE:AYM

LIM signs new sales and off-take agreements

·         Two year iron ore sales agreement with
Iron Ore Company of Canada for 2013 and 2014

·         US$35 million off-take financing with RB Metalloyd

Anglesey Mining’s associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report that it has entered into a new iron ore sales agreement with the Iron Ore Company of Canada (“IOC”) for the sale of all of LIM’s iron ore production for the next two calendar years 2013 and 2014.

At the same time, LIM has announced that it has entered into an off-take financing agreement with RB Metalloyd Limited (“RBM”), a leading international commodity trading house, under which LIM will receive an advance payment of US$35 million to be credited against future sales of a minimum of 3.5 million tonnes of iron ore during 2013 and 2014.

LIM commenced its third year of direct shipping iron ore production from its Schefferville area iron ore mines in Western Labrador in April 2013 and is targeting production of 1.75 to 2.0 million tonnes of sinter fines and lump in 2013. The first Capesize shipment of 2013 is expected to be loaded around the end of May.

Two year iron ore sales agreement with IOC

Over the past two years, LIM has sold 13 Capesize shipments of iron ore to IOC, for a total of approximately 2 million tonnes, all of which was resold in China, with the price calculated based on the daily China spot price, subject to varying selling discounts, and where the sale of LIM’s iron ore experienced unpredictable variations based on prevailing market conditions.

Under LIM’s new sales agreement, IOC will pay for the iron ore progressively, as the ore is resold, with the price calculation based on the monthly average of the market index, which should decrease LIM’s exposure to market volatility experienced in the past two years.  IOC payments will be later reconciled based on IOC’s net actual aggregate resale price, adjusted for any product quality specification premiums or penalties, after ocean freight and IOC’s price participation.

“We are very pleased to be able to continue our working relationship with IOC as we head into our third year of production from our Schefferville area iron ore mines” said John Kearney, LIM’s Chairman and Chief Executive Officer. “In addition, extending the contract for the next two years and fixing the price to be calculated based on the monthly average of the market index are two important improvements over previous years.”

US$35 million off-take financing

Under the terms of the financing agreement with RB Metalloyd, RBM has advanced a pre-payment of US$35 million to LIM, which will repaid over a period of two years, credited against the proceeds of LIM’s sales of iron ore shipments between July 2013 and December 2014.

RBM has entered into an iron ore off-take agreement with IOC under which RBM has agreed to buy the LIM iron ore from IOC on an FOB Sept-Îles basis.

“This advance payment financing of $35 million from RBM provides LIM with important working capital and increased liquidity and will enable us to ramp up our 2013 production of iron ore and complete our planned capital investment and improvements on our Silver Yards processing plants”, added John Kearney.

“We look forward to working with RB Metalloyd, who bring LIM experience and expertise in the marketing and sale of iron ore as well as extensive knowledge of the iron ore and steel markets worldwide.”

Iron Ore Company of Canada (IOC)

IOC is Canada’s largest iron ore producer from its mines located in Western Labrador and is a leading global supplier of iron ore pellets and concentrates. IOC owns 100% of the Quebec North Shore and Labrador (“QNS&L”) railway and, at the port of Sept-Îles, owns established storage and ore handling facilities, including its ship dock capable of taking ocean going vessels up to 240,000 (dwt) tonnes.

In 2011, LIM entered into a life of mine, rail transportation contract with QNS&L for the rail transportation of LIM’s products on the QNS&L railway. This contract provides for a confidential tariff, with capacity and volume commitments on the part of each party.

RB Metalloyd (RBM)

RBM is a leading international commodity trading house with specific expertise within the steel making raw materials sectors.  RBM is a subsidiary of RB Resources, an investment company for all natural resources investments held by the Reuben Brothers Group, one of the world’s largest privately held investment companies.

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. Initial production commenced at the James Mine in June 2011. LIM has commenced its third year of operations and is targeting 1.75 to 2.0 million tonnes of saleable iron ore production in 2013.

For further information, please visit LIM’s website at www.labradorironmines.ca

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital. Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, 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;

Ian Cuthbertson, Finance Director +44 (0)1248 361333;

Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton / Jos Simson:  Tavistock Communications +44 (0)20 7920 3155

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LIM Announces Strategic Relationship with Tata Steel Minerals Canada

Anglesey Mining’s associate Labrador Iron Mines Holdings Limited (TSX:LIM) reports that it has  entered into a framework arrangement with Tata Steel Minerals Canada (“Tata”), a subsidiary of Tata Steel Limited, to establish a strategic relationship between LIM and Tata whereby the two companies have agreed to co-operate with each other in various aspects of their iron ore operations in the Labrador Trough and enter into definitive agreements to formalise this arrangement in due course.

The key points of this arrangement are:

  • LIM and Tata will work together to ensure the successful joint development of rail and port infrastructure facilities at Schefferville and Sept-Iles.
  • Tata will purchase an initial 51% joint venture interest in LIM’s Howse deposit for a $30 million cash payment to LIM.
  • LIM will acquire the right to develop the Tata Timmins 4 deposit at a rate of $2 per tonne.

LIM and Tata operate adjacent DSO iron ore projects in the Province of Newfoundland and Labrador and in the Province of Quebec, and intend to utilize the same rail and port infrastructure.

The strategic relationship will include multi-part co-operation agreements in areas of logistics, property rationalisation, ancillary support and potential off-take arrangements. As part of the logistics agreements, the companies will formalise arrangements for development of the rebuilt rail line that will pass through LIM’s Silver Yards facilities from Tata’s new Timmins Area processing plant to the TSH main rail line.

The companies also plan to continue to co-operate on the upgrade of the TSH rail line that connects Silver Yards/Timmins spur line to the QNS&L line and on other areas of future logistics operations such as camp accommodations, the sharing of ore cars, flat bed freight cars and rail car repair facilities.

The co-operation agreement will also include participation in developing infrastructure at the Port of Sept-Îles with the objective of establishing access and terminal facilities for both companies to the Port’s new deep sea multi-user dock.

As part of the strategic relationship, LIM and Tata have agreed to enter into a transaction for the development of LIM’s Howse deposit and Tata’s Timmins 4 deposit. LIM will sell a 51% interest in its Howse deposit to Tata. The Howse deposit, located about 25 kilometres north of LIM’s James Mine and Silver Yards processing plant, has a historical resource of 28 million tonnes and is part of LIM’s proposed Stage 3 project, currently expected to be developed about 2020. It is expected that significant cost savings and synergies can be achieved by processing Howse ore through Tata’s adjacent Timmins Area plant.

As part of the proposed cooperation arrangements, and fulfillment of certain conditions precedent, LIM will receive a cash injection of $30 million. LIM may also acquire up to 100% interest in Tata’s “Timmins 4” deposit, located about 2 kilometres from Howse, at a consideration of $3 million payable from sales of Timmins 4 ore at $2 per tonne. In future, Tata has an option to inject up to $25 million into the Howse project to further increase its interest in the Howse deposit to 70%.

In a separate release Mr H.M. Nerurkar, MD of Tata Steel Limited noted “The proposed arrangement with LIM is expected to enhance the raw material security for the group and streamline the logistics of the DSO Project

LIM’s Chairman and Chief Executive Officer John Kearney said “This is a transformational arrangement for LIM that has the potential to provide significant cost synergies, position LIM to address key logistics and infrastructure issues and expedite the development of LIM’s Howse deposit. The $30 million in cash proceeds from the proposed arrangements will be used by LIM to fund its working capital, capital expenditure and exploration requirements for the 2013 operating season”.

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital. Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, one of LIM’s twenty 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;

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

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Interim management statement and LIM third quarter results

Following LIM’s fund raisings in November 2012 and February 2013, Anglesey Mining’s holding in its associate Labrador Iron Mines (TSX:LIM) has moved from 26% to 15.3% of the issued share capital of LIM. In the November financing Anglesey subscribed C$1.5 million (£935,000) to purchase 1,500,000 LIM shares and now holds 19,289,100 shares. Anglesey currently has the right to purchase on a non-brokered private placement basis up to 3,000,000 units of one LIM share and one-half of a LIM share purchase warrant at a price of $1.065 per unit subject to certain conditions for a limited period. The results of LIM’s operations for the period ended 31 December 2012 are described below.

At the company’s 100% owned Parys Mountain copper-lead-zinc deposit in Anglesey, new JORC-compliant resources were estimated by consultants Micon International based on drilling and other work which was completed in the summer of 2012. Micon are now close to completing a scoping study for Parys Mountain which will help to guide the next steps for the project.

LIM Highlights

  • For the 2012 operating season, LIM met its revised sales target of 1.7 million wet tonnes (1.6 million dry tonnes) of iron ore, representing a 4x increase in sales over the 2011 operating season.
  • During the quarter, LIM sold three shipments of iron ore totalling 425,500 dry tonnes and reported revenue of $24.7 million (free on board (“FOB”) Port of Sept-Îles).  On the 10 ships sold during the 2012 operating season (FOB Port of Sept-Îles), LIM reported revenue of $95.8 million.
  • During the quarter, LIM mined 423,000 tonnes of ore and waste at an average strip ratio of 1.1:1 (waste to ore) prior to the end of the operating season in November, representing a 34% reduction in strip ratio when compared to previous quarters. This brings the year-to-date ore and waste mined to approximately 5 million tonnes.
  • Also during the quarter and prior to the end of the operating season, LIM railed 254,000 tonnes of ore to the Port of Sept-Îles, bringing the year-to-date rail volume to just under 1.5 million tonnes.
  • In December, LIM completed its largest exploration program ever of 14,000 metres (“m”) of diamond and reverse circulation (“RC”) drilling. LIM anticipates completing several new and updated National Instrument 43-101 (“NI 43-101”) compliant resource estimates resulting from the 2012 exploration program.

“In successfully completing our first full season of production in 2012, we achieved many operational objectives, highlighted by strong operational performance, the installation of a new dry process system at Silver Yards, increased rail volumes to the Port and the sale of 10 shipments of LIM’s iron ore” stated Rod Cooper, President and COO of Labrador Iron Mines. “Over the winter months, we have been hard at work in anticipation of resuming operations in the spring. We plan to leverage the operational experience gained over the past two seasons, combined with strengthened working relationships with key stakeholders, to achieve greater efficiencies and opportunities in the upcoming operating season.”

LIM’s Planning for the 2013 Operating Season

“In planning for our 2013 operating season, we are encouraged by the recent strong recovery in iron ore prices to above $150 per tonne. There are also a number of factors that indicate strong support in the near term that could have a favourable impact on LIM’s early sales revenues in 2013 and we looking forward to resuming operations in the spring.” stated John Kearney, Chairman and CEO.

Iron ore spot prices have rebounded since September 2012, especially in December, and reached a high of approximately US$159 per tonne in early January 2013. The current spot price for iron ore is above US$150 per tonne on a 62% Fe CFR China basis and has risen over 70% since the market low last September.

LIM’s mining operations are seasonal (April to November), with a planned winter closure from December to March. Detailed planning for the upcoming operating season takes place during the winter months.

In advance of the 2013 operating season, LIM carried out the following initiatives:

  • For the quarter ended December 31, 2012, a new dry screening unit was delivered to site for installation and use in 2013. This will complement the existing dry classifying system to process (crush and screen) lump and sinter fines products. LIM has transitioned its product mix to produce lump and sinter, exclusively.
  • Product inventory at Silver Yards was reduced to a minimum prior to the end of the 2012 season.  Run of mine-inventory remaining at Silver Yards will serve as initial wet plant feed during 2013 to allow for operational flexibility.
  • A new contractor has been selected to operate the Silver Yards wet beneficiation plant in 2013.

In resuming its planned seasonal mining operations in the spring, LIM will incur regular operating, mining and transportation expenses for the months of April and May, prior to receipt of payment from its first sale of iron ore. As a result, LIM will require working capital of approximately $40 million to fund various operating and re-start expenses ($30 million) and certain planned capital expenditures ($10 million), including the commissioning of Silver Yards Phase 3 and connection to grid power.

  • In February 2013, subsequent to the end of the quarter, LIM completed an equity financing for gross proceeds of $29 million. LIM currently intends to commence its 2013 operating season at the beginning of April with a pre-stripping program in March.
  • LIM is also actively pursuing financing arrangements to fund various planned expenditures including capital expenditures and infrastructure advances in 2013. LIM has a high degree of confidence that additional working capital or off-take or other financing will be secured on a timely basis to meet the requirements of the 2013 operating season.
  • LIM is currently targeting approximately 1.7 to 2.0 million wet tonnes of saleable iron ore production in 2013.

Results of Operations

See LIM’s press release at http://www.labradorironmines.ca/invest_news_and_information.php

LIM Outlook

In the near term, operations will focus on LIM’s Stage 1 deposits, which include the James Mine (currently operating) and five smaller satellite deposits and some historical stockpiles located within a 15 km radius of the James Mine and the Silver Yards processing plants.

LIM has previously stated that resumption of mining operations in April 2013 for the 2013 operating season will depend on a number of inter-related factors including being reasonably confident that the forecast world iron ore prices will continue at levels of US$110 or higher on a CFR China basis at least for the 2013 operating season (April through November). LIM has been continuously monitoring published iron ore price forecasts provided by investment and industry analysts as well as the futures market for iron ore since the seasonal shutdown of operations in November 2012. Based on this and having regard to increases in such price during December 2012, January and early February 2013, LIM believes that sufficient confidence levels exist to resume normal operations in April 2013.

LIM is currently targeting approximately 1.7 to 2.0 million wet tonnes of saleable iron ore production in 2013. Cash operating costs in 2013, consisting of mining, processing, rail and transportation and site general and administrative costs, are expected to be approximately $65 to $70 per tonne of product sold, unloaded at the Port.

LIM Third Quarter Financial Review

During the fiscal third quarter ended December 31, 2012, LIM sold three shipments totalling 425,500 dry tonnes of iron ore and recognized revenue of $24.7 million (FOB Port of Sept-Îles) from the sale of these shipments. Revenue for the third quarter was negatively impacted by low realized iron ore prices (i.e. CFR China spot price less value-in-use adjustments).

For the quarter ended December 31, 2012, LIM reported a loss of $16.1 million, or $0.19 per share, which included a depletion and depreciation charge of $5.1 million or $0.06 per share. The depreciation and depletion figure represents a period charge, primarily on a units-of-production basis, of the cost of the James mine (including capitalized stripping and dewatering), Silver Yards processing plant, transportation equipment, and infrastructure and site administration properties associated with the James mine operations.

During the quarter, LIM invested approximately $13.5 million in property, plant and equipment, which consisted mainly of investments in the Silver Yards Phase 3 processing plant, grid connection infrastructure and expansion of the mine accommodation camp.

For the nine months ended December 31, 2012, LIM sold ten shipments totalling 1.6 million dry tonnes of iron ore and recognized revenue of $95.8 million (FOB Port of Sept-Iles). LIM reported a loss of $58.4 million, or $0.79 per share, including a depletion and depreciation charge of $29.3 million, or $0.40 per share for the nine months ended December 31, 2012.

At December 31, 2012, LIM had current assets of $48.5 million, including inventories with a carrying value of $12.8 million and accounts receivable and prepaid expenses of $24.1 million. At December 31, 2012, there were a total of $10.2 million unrestricted cash and cash equivalents and an additional $7.6 million in restricted cash.

Current liabilities, consisting of accounts payable and accrued liabilities, the premium liability recognized on the issuance of flow-through shares and the current portion of finance lease obligations and rehabilitation provision, were in aggregate $47.8 million at December 31, 2012. During the quarter, LIM completed a bought deal public offering for gross proceeds of $30 million. In February 2013, LIM completed an equity financing for gross proceeds of $29 million.

Parys Mountain

The new JORC-compliant resources estimated by Micon International are summarised as follows:

Zone Category Tonnes Cu % Pb % Zn % Ag g/t Au g/t
Engine Indicated 489,000 1.38 2.61 4.99 92.8 0.5
Inferred 121,000 1.74 3.42 6.74 70.0 0.5
Deep Engine Inferred 618,000 1.95 1.90 4.22 23.0 0.2
White Rock Indicated 1,625,000 0.34 2.05 3.84 33.0 0.5
Inferred 534,000 0.38 1.93 4.04 41.0 0.4
Garth Daniel Inferred 299,000 2.06 3.07 6.43 75.0 0.2
Northern Inferred 2,542,000 1.48 0.56 0.94 6.0 0.4
Total Indicated 2,114,000 0.58 2.18 4.11 46.0 0.5
Inferred 4,114,000 1.46 1.20 2.40 20.0 0.3

Details of the estimation methods for these resources are set out on the company’s website and at  http://angleseymining.co.uk/news/?p=342.

This new estimate follows a previous report by Micon in 2007 that dealt only with the White Rock deposit.  The current estimate includes all the known contiguous deposits on site and is reported on a JORC Code-compliant basis.  With the exception of the 2007 White Rock estimate, the previous resource was historical (estimated in 1990) and was not JORC Code-compliant.  In now reporting all estimates on a JORC Code-compliant basis the project has been brought up to date and put in a position to be properly recognised for future funding.

Anglesey is particularly pleased with the work on the Garth Daniel Zone and the Northern Zone. The Garth Daniel zone had been partially identified in 1990 but benefitted from a further drilling programme in 2005 and 2006.  The current estimate draws all this information together. The Northern Zone was previously poorly identified and without any significant continuity. Micon has now shown such continuity to exist and has defined a major resource for two discreet overlapping structures.

There are several other areas on Parys Mountain that have had exploration and drilling carried out on them that have not been included in these estimates. These include the area between the Deep Engine Zone and Garth Daniel, and the area around the Pearl Engine House that was drilled earlier this year.  These and other targets will be subject to additional exploration in the future, and it is hoped that additional data will enable further continuity to be demonstrated with subsequent additions to the resource base. Anglesey believes there is ample scope for significant additions to the resources reported here.

At the appropriate time it is planned to carry out additional development and drilling to bring some or all of the Inferred mineral resource in to the Indicated mineral resource category.  This will be dependent on funding and, in some cases, underground access to these areas.

The scoping study on the potential future development of Parys Mountain being produced by Micon is well advanced.

Summary and outlook

Anglesey is encouraged by the recent rise in iron ore price particularly over the last two months.  This now stands at over $150 per tonne CFR China for 62% sinter fines.  If this persists then Anglesey believes that LIM could enjoy a very successful year in 2013.

Base metal prices have held their own over the last six months and the forecasts particularly for the zinc market during the next two to three years appear to be encouraging for Parys Mountain.

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital after the offering (19.6% prior to the offering). Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, one of LIM’s twenty 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;

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

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Posted in Financial, Labrador | Comments Off on Interim management statement and LIM third quarter results

LIM completes C$29 million equity financing

Over-allotment option exercised in full

Anglesey Mining’s associate Labrador Iron Mines Holdings Limited (TSX:LIM) reports that it has completed its previously announced public offering, including the full amount of the over-allotment option, for aggregate gross proceeds of C$28,980,000.

A total of 27,600,000 units of LIM, including those issued pursuant to the exercise of the over-allotment option, were issued and sold at a price of C$1.05 per unit.  Each unit consists of one common share of LIM and one-half of one common share purchase warrant.  Each warrant will entitle the holder to purchase one common share of LIM at an exercise price of C$1.35 per common share for a period of 36 months following the closing of the offering.  The warrants have been listed on the Toronto Stock Exchange and will trade under the symbol LIM.WT.

The offering was completed by a syndicate of underwriters led by Canaccord Genuity Corp. and included RBC Dominion Securities Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Raymond James Ltd.

LIM intends to use the net proceeds to fund pre-stripping, mining and processing costs, including payments to LIM’s mining contractors, and transportation costs in connection with the seasonal resumption of production operations in April 2013; also to supplement working capital and general and administrative costs for the remaining winter season.

LIM issued 27,600,000 common shares pursuant to the offering and now has 126,200,807 common shares outstanding. Anglesey has the right to purchase on a non-brokered private placement basis up to 3,000,000 units of one LIM share and one-half of one LIM share purchase warrant at a price of C$1.065 per unit subject to certain conditions.

About Anglesey Mining plc

Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital after the offering (19.6% prior to the offering). Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, one of LIM’s twenty 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;

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

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Posted in Labrador | Comments Off on LIM completes C$29 million equity financing

LIM equity financing

·         LIM confirms C$25.2 Million underwritten equity financing

·         Supplementary private placing for Anglesey, subject to financing and other conditions

Anglesey Mining’s 19.7% owned associate Labrador Iron Mines Holdings Limited (TSX:LIM) reports that in connection with its previously announced amended overnight marketed public offering on January 17, 2013 (the “Public Offering”), it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including RBC Dominion Securities Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Raymond James Ltd. (the “Underwriters”) to sell 24,000,000 units of LIM (the “Units”) at a price of C$1.05 per Unit (the “Offering Price”) for aggregate gross proceeds of C$25,200,000. Each Unit will consist of one common share of LIM and one-half of one common share purchase warrant.  Each warrant will entitle the holder to purchase one common share of LIM at an exercise price of C$1.35 per common share for a period of 36 months following the date of closing of the Public Offering.

LIM has also granted the Underwriters an over-allotment option to purchase up to 3,600,000 additional Units (in whole or in part), exercisable at any time up to 30 days after and including the closing of the Public Offering at the Offering Price for additional gross proceeds of up to C$3,780,000.

Anglesey is a major shareholder and insider of LIM which currently holds 19.2 million 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 for gross proceeds to LIM of C$3,195,000, subject to certain conditions, including regulatory approvals described below. Completion of the Public Offering is not conditional on this Private Placement, and purchasers of Units under the Public Offering will not rely on the fact that Anglesey has agreed to increase its present investment in common shares of LIM.

LIM intends to use the net proceeds from the Public Offering to fund pre-stripping, mining, and processing costs, including payments to LIM’s mining contractors, and transportation costs, including tariff payments to TSH and QNS&L, in connection with the seasonal resumption of production operations in April 2013; capital and infrastructure expenditures on the Silver Yards processing plant including the connection to hydro power; and to supplement working capital and general and administrative costs for the remaining winter season. Proceeds from the Private Placement are intended to be used to supplement LIM’s working capital and for general corporate purposes.

The Public Offering is scheduled to close on or about February 5, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities. Closing of the Private Placement is subject to several conditions which include (i) all necessary regulatory approvals being obtained including that of the Toronto Stock Exchange; (ii) Anglesey securing financing to fund the subscription price; and (iii) the completion of the Public Offering.  It is anticipated that this Private Placement will close contemporaneously with or no later than 30 days after the closing of the Public Offering.

For further information, please visit LIM’s website at www.labradorironmines.ca.

About Anglesey Mining plc

Anglesey currently holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited (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 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;
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

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Posted in Labrador | Comments Off on LIM equity financing

LIM Announces Unit Equity Financing

Anglesey Mining’s 19.7% owned associate Labrador Iron Mines Holdings Limited (TSX:LIM) announces that it has filed an amended and restated preliminary short form prospectus in connection with an overnight marketed public offering (the “Offering”) of units of LIM (the “Units”) at a price of C$1.05 per Unit (the “Offering Price”). Each Unit will consist of one common share of LIM and one-half of one common share purchase warrant.  Each warrant will entitle the holder to purchase one common share of LIM at an exercise price of C$1.35 per common share for a period of 36 months following the date of closing of the Offering.  The Offering will be conducted through a syndicate of underwriters led by Canaccord Genuity Corp. and including RBC Dominion Securities Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Raymond James Ltd. (the “Underwriters”).

LIM will also grant the Underwriters an over-allotment option to purchase up to that number of additional units (the “Over-Allotment Units”) equal to 15% of the Units 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.

LIM intends to use the net proceeds from the Offering to fund pre-stripping, mining, and processing costs, including payments to LIM’s mining contractors, and transportation costs, including tariff payments to TSH and QNS&L, in connection with the seasonal resumption of production operations in April 2013; capital and infrastructure expenditures on the Silver Yards processing plant including the connection to hydro power; and to supplement working capital and general and administrative costs for the remaining winter season.

For further information, please visit LIM’s website at www.labradorironmines.ca.

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Posted in Labrador | Comments Off on LIM Announces Unit Equity Financing