Anglesey Mining plc
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