LIM announces C$110 million equity
financing
Anglesey Mining???s
associate Labrador Iron Mines Holdings Limited (TSX:LIM) (the ???Company??? or ???LIM???) (hitherto 41% owned) is pleased to announce that in
connection with its previously announced overnight marketed public offering on
April 4, 2011 (the ???Offering???), it has entered into an underwriting
agreement with a syndicate of underwriters led by Canaccord
Genuity Corp. and including BMO Nesbitt Burns Inc.,
Jennings Capital Inc., Haywood Securities Inc. and Scotia Capital Inc. (the ???Underwriters???) to sell
8,000,000 common shares (the ???Common Shares???) at a price of C$12.50 per Common Share and 666,700
flow-through shares (the ???FT Shares???, and together
with the Common Shares, the ???Underwritten Shares??? of
the Company at a price of C$15.00 per FT Share for aggregate gross proceeds of
C$110,000,500.
LIM has also granted the Underwriters an
over-allotment option to purchase up to that number of additional common shares
(the ???Over-Allotment Common Shares???,
and together with the Common Shares and FT Shares, the ???Offered
Securities???) equal to 15% of the Common Shares 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 of the Common Shares of
C$12.50 per share.
Anglesey Mining plc has not taken part
in the equity financing. Following the issue of the Underwritten Shares
Anglesey's holding in LIM will represent 33.8% of LIM's issued share capital;
assuming the Over-Allotment Common Shares are also issued, Anglesey's holding
in LIM will be 33.1%.
LIM intends to use the net proceeds from
the Offering for upgrades to and expansion of the Silver Yards plant, for
payments under the recently announced rail transportation agreements, for exploration
and development of its mineral projects, and for general corporate and working
capital purposes.
The Offering is being made pursuant to a
short form prospectus filed in each of the provinces of Canada other than
Quebec. The Offered Securities are not registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements.
This press release does not constitute
an offer of securities for sale in the United States. The securities being
offered have not been, nor will be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold within the
United States absent U.S. registration or an applicable exemption from U.S.
registration requirements.
About Labrador Iron Mines Holdings
Limited (LIM)
LIM's Schefferville
Area project involves the development of twenty direct shipping iron ore
deposits in western Labrador and north-eastern Quebec near Schefferville,
Quebec. The properties are part of 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.
LIM contemplates mining in stages, the
first phase of Stage 1 comprising the James and Redmond deposits, which are
located in close proximity to existing infrastructure, and for which all
operating permits have been issued and plant construction and mine development
is nearing completion.
For further information, please view the
Company???s website at www.labradorironmines.ca.
About Anglesey Mining plc
Anglesey Mining with its LSE main board
listing is primarily focused on its 41% interest in Labrador Iron Mines (TSX: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, please contact:
Bill Hooley, Chief Executive +44 (0)
1492 541981
Ian Cuthbertson,
Finance Director +44 (0) 1248 361333
Emily
Fenton / Charlie Geller, Tavistock
Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035