Over-allotment Option exercised for
$11.25 million
Anglesey Mining s 33% owned associate Labrador
Iron Mines Holdings Limited (
LIM or the Company ) (TSX: LIM) is pleased to
announce today that the underwriters of the recently completed $110,000,500
public offering of common shares (the Offering ) have exercised the
over-allotment option (the Option ) granted in connection with
Offering and have purchased an additional 900,000 shares for gross proceeds of
$11,250,000, bringing the total gross proceeds of the Offering to $121,250,500.
The syndicate of underwriters,
led by Canaccord Genuity
Corp. and including BMO Nesbitt Burns Inc., Jennings Capital Inc., Haywood
Securities Inc. and Scotia Capital Inc., elected to purchase 900,000 additional
common shares of the Company at the Offering price of $12.50 per share. The
Option was granted as part of the Offering which was closed on April 26, 2011.
LIM has completed the issuance of shares pursuant to the exercise of the Option
and has received gross proceeds of $11,250,000.
Exercise of the Option has increased the
aggregate gross proceeds of the Offering to $121,250,500. LIM intends to use
the net proceeds from the Offering for upgrades to and expansion of the Silver
Yards plant, for payments under rail transportation agreements, for exploration
and development of the Company
s mineral projects, and for general corporate and working capital
purposes.
Following completion of the Offering and
giving effect to the exercise of the Option, LIM now has 53,855,791 common
shares issued and outstanding.
Mining and Plant Commissioning
Underway
James Mine
Mining operations at LIM s Schefferville
Area direct shipping iron ore project in Western Labrador commenced in April,
2011. Waste stripping of the first bench at the James North deposit is nearing
completion and has exposed over 400 metres of ore
along strike. Over 1,100 grade control holes have been completed and assayed to
date towards detailed information for mining grade control. Approximately
100,000 tonnes of iron ore has been stockpiled to
date.
Silver Yards Beneficiation Plant
Commissioned
Mechanical dry commissioning of the
Silver Yards beneficiation plant is complete. The motor control centre is fully
operational and the process logic control connected and commissioned. All
instrumentation and controls will be fully operational by the end of May. Hot
commissioning, with first ore being fed through the plant, is expected to
commence in the first week of June.
The plan for the initial phase of
operations of the Silver Yards beneficiation plant consists of washing and
screening the higher grade blue ore material, while the higher silica blue ore
and the yellow ore will be stockpiled for later treatment.
LIM plans to upgrade and expand the
Silver Yards plant in subsequent phases to increase recoveries, treat lower
grade and higher silica ores and to increase throughput and output. The Phase
II expansion, consisting of the addition of a new lump ore secondary screen and
a fines recovery system, is planned to be completed during the summer of 2011.
Rail and Port
An extension to LIM s rail spur line and other track
work at Silver Yards has been completed. LIM has purchased a fleet of 400
previously used railcars of which the first consignment of
120 rail cars have been delivered to the Port of Sept-Iles where
inspections and modifications are being carried out.
The first two SD 40-3 locomotives have
arrived at Sept-Iles and will shortly be positioned to Silver Yards. LIM has
signed a rail services agreement with Western Labrador Rail Services (WLRS), a wholly
owned subsidiary of Genesee & Wyoming Inc. WLRS will provide, operate and
maintain up to five SD 40-3 locomotives which will be used to haul LIM s iron ore from Silver Yards, over
the TSH privately owned railway, to Emeril Junction.
WLRS will also operate LIM's six kilometre railway
which connects LIM s Silver
Yards processing facility to the main Schefferville
to Emeril Junction rail line. It is expected that
rail shipments of iron ore from Silver Yards to the Port of Sept-Iles will
commence in June.
In furtherance of the agreement signed
with the Port of Sept-Iles in February 2010, LIM has signed a memorandum of
understanding with the Port for the use of the Pointe aux Basques terminal for
handling and ship loading of LIM
s iron ore for the 2011 season. LIM has also signed an agreement with a
port terminal operator for the unloading, stacking and ship loading of iron ore
at Pointe aux Basques.
Use of the Pointe aux Basques facilities
will require train shunting and unloading in the adjacent rail yard and loading
the iron ore onto barges or lakers and transhipping to larger vessels within the deeper waters of
the bay. These port handling arrangements are currently under negotiation and
are expected to be concluded in the near future.
Appointment of Broker
On 19 May 2011 the board of Anglesey
Mining plc was pleased to announce the appointment of Ambrian
Partners Limited as broker to the company with immediate effect.
About Labrador Iron Mines Holdings
Limited (LIM)
LIM s Schefferville
Area projects involve the development of twenty direct shipping iron ore
deposits in western Labrador and north-eastern Quebec near Schefferville,
Quebec. The Company s
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.
Labrador Iron Mines contemplates
developing its Schefferville Area projects in stages.
The first phase of Stage 1 comprises the James Deposit where mining has already
commenced. Cold commissioning of the Silver Yards processing plant has been
completed and it is expected that, following hot commissioning, the first ore
will be fed to the plant in early June.
About Anglesey Mining plc
Anglesey Mining with its LSE main board
listing is primarily focused on its 34% 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
Samantha Harrison / Shaun Whyte,
Ambrian Partners Limited +44 (0) 2076 344700
Emily
Fenton / Charlie Geller,
Tavistock Communications +44 (0) 20 7920 3155
/ +44 (0) 7788 554035
