3 January 2008 LSE: AYM
Anglesey Mining plc (“the Company”) is pleased to report that Canaccord Capital Corporation, the agent in the recently completed initial public offering by the Company’s Canadian subsidiary Labrador Iron Mines Holding Limited (“LIMH”), has exercised its full over-allotment option to offer for sale an additional 1.72 million units at $C4.00 per unit for gross proceeds of $C6.9 million. The closing of this over-allotment option is anticipated to take place on 8 January 2008. Exercise of the over-allotment option has increased the size of the initial public offering to 13.19 million units raising total gross proceeds of $C52.8 million. Each unit consists of one common share and one half of a common share purchase warrant exercisable at a price of $C5.00 per share at any time prior to 24 months from the closing of the offering.
Following the exercise of the over-allotment option, LIMH will have 37,193,951 common shares and 6,596,975 share purchase warrants, both listed on the Toronto Stock Exchange (TSX:LIR), together with 857,606 broker warrants and 2,950,000 director and employee stock options outstanding. The Company holds 18.6 million LIMH common shares and this constitutes over 50% of the issued common stock in LIMH.
The Company in conjunction with LIMH believes that the gross proceeds of this offering will be sufficient to bring the initial Labrador properties into production without additional recourse to capital markets. First production of iron ore product is forecast for the summer of 2009.
Bill Hooley, Chief Executive, commented:
“We are very pleased and encouraged by the ongoing support shown to LIMH by the agent and we believe that this confirms our faith in the strength of the Labrador Project. We expect LIMH to continue to make a major contribution to Anglesey in the future. We note that at yesterday’s closing market price in Toronto the market capitalisation of LIMH based on this expanded share base is approximately $C156 million. At this closing price and at the current exchange rate, the value of the Company’s holding in LIMH is approximately £38.5 million or over 25 pence per Anglesey share. In addition to LIMH, the Company continues to develop the valuable Parys Mountain poly-metallic property in North Wales”.
For further details:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director +(44) 1248 361333
John F. Kearney, Chairman +(1) 416 362 6686
Canaccord Adams +(44)) 207 0506747
Parkgreen Communications +(44) 20 7851 7480
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333