Anglesey Mining PLC LIMH Plan of Arrangement, Placing of New Anglesey Shares
December 16 2016 - 6:18AM
UK Regulatory
TIDMAYM
Anglesey Mining plc
16th December 2016
LSE: AYM
LIMH completes Plan of Arrangement
Placing of New Anglesey Shares for GBP0.3 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 GBP310,200.
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
END
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