31 March 2010 LSE:AYM
Anglesey Mining plc ('Anglesey') is pleased to announce that the underwriters for the recently completed public offering of C$35 million (£22 million) by its associate Labrador Iron Mines Holdings Limited ('LIM') in Toronto, have exercised their over-allotment option to purchase 810,900 LIM common shares from Anglesey at a price of C$5.55 per share for gross proceeds of C$4.5 million - equivalent to £2.9 million.
Following this option exercise Anglesey now holds 17,789,100 shares of LIM which represent 41% of LIM's 43,369,951 currently issued and outstanding shares.
The estimated net proceeds from this sale of £2.7 million after expenses will be received entirely by Anglesey and will be used for general corporate costs and working capital purposes.
Chief Executive Bill Hooley commented "We are very pleased that the underwriters have exercised their option and this transaction has been completed. Anglesey now has sufficient funds for its immediate requirements and is looking at using the opportunity to demonstrate shareholder value at Parys Mountain, and to investigate and progress new activities. There are a number of possible projects that have been under active review recently and we are pleased to have the funding to properly evaluate and progress these projects where appropriate."
Labrador Iron Mines Holdings Limited (TSX:LIM) is listed on the Toronto Stock Exchange and is engaged in the exploration and development of direct shipping iron ore deposits in western Labrador and north eastern Quebec near the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982. Mining will be carried out in stages commencing with the James and Redmond deposits which are located in close proximity to existing infrastructure. Subject to timely receipt of permits and licences production of high-grade hematite is planned to commence in the summer of 2010.
Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in LIM. In addition to any new projects that may be brought forward the company 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
Bill Hooley, Chief Executive 01492 541981
Ian Cuthbertson, Finance Director 01248 361333
Emily Fenton/Charlie Geller, Conduit PR 020 7429 6608 / +44 7788 554035