16th December 2016 LSE: AYM
LIMH completes Plan of Arrangement
Placing of New Anglesey Shares for £0.3 million completed
Anglesey Mining plc ('Anglesey' or the 'Company') is pleased to announce that Labrador Iron Mines Holdings Limited ('LIMH') has reported that its Plan of Compromise and Arrangement (the 'Plan') under the Canadian Companies' Creditors Arrangement Act has been approved by creditors and sanctioned by the Ontario Superior Court of Justice in Toronto.
The Sanction Order of the Court marks the final legal milestone in LIMH's financial restructuring process, with implementation of the Plan scheduled for Monday, December 19th, 2016.
Upon implementation of the arrangement creditors of LIMH will be issued, as a group, approximately 22% of the shares of LIMH which means that Anglesey will then hold approximately 11.9% of LIMH and will be its second largest shareholder. Creditors will also be issued 49% of LIMH's operating subsidiary Labrador Iron Mines Limited.
The Plan implements a restructuring of LIMH's business to preserve its mining assets, continue its mine site activities in a care and maintenance standby mode and position LIMH to refinance an orderly resumption of its iron ore mining activities when economic conditions warrant.
Bill Hooley, Chief Executive, stated 'We are very pleased to see LIMH passing this major milestone which will leave it debt free and with all its major assets intact. As a significant shareholder in LIMH we look forward to the future development of its iron ore assets in Labrador when the economic climate is right, and to other opportunities that LIMH is now in a position to pursue.'
Placing of New Anglesey Shares completed
Anglesey also reports that the previously announced issue 12,000,000 new ordinary shares in the Company has been completed raising a total of £310,200. The issued ordinary share capital of the company is now 172,608,051 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 Conduct Authority's Disclosure and Transparency Rules.
The proceeds of the placement will be used for project development of Anglesey's 100% owned Parys Mountain zinc-copper-lead deposit and for general working capital. An updated scoping study is currently being prepared by Micon International Limited and Fairport Engineering Limited, both of which are acknowledged experts and leaders in the resources sector.
About Anglesey Mining plc
Anglesey is carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported resource of 2.1 million tonnes at 6.9% combined base metals in the indicated category and 4.1 million tonnes at 5.0% combined base metals in the inferred category
Anglesey holds a 6% interest and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 51%.
Anglesey also holds 11.9% of Labrador Iron Mines Holdings Limited which has direct shipping iron ore deposits in Labrador and Quebec, currently held in stand-by care and maintenance pending an improvement in the iron ore price.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 653 9881;
Elliot Hance, Beaufort Securities+44 (0)207 382 8300