30th June 2021
LSE:AYM
Labrador Iron Mines
Annual Financial Results
Plans for Houston |
Anglesey Mining plc (“Anglesey”) is pleased to report
that Labrador Iron Mines Holdings Limited (“LIMH”) in which
Anglesey has a 12% holding has released its financial results for
the year ending 31st March
2021 which includes commentary on LIMH’s operational and
funding plans for the Houston Project.
This release can be found on LIMH’s website at
www.labradorironmines.ca
The key points in the Houston
plans are:
Houston Operations
(i) Complete metallurgical test
work of drill core collected from the Houston Project in a 2013
bulk sample, which is currently in storage. Results of the
test work will be used to refine the product specifications and
process flowsheet assumed in the Preliminary Economic
Assessment. Among other things, this analysis will yield
important product characterisation information which could be
helpful in marketing the product.
(ii) Complete a trade-off study on use
of LIM’s Redmond property rail right-of-way for the Houston
Project’s rail loading operations. Although a longer truck haul is
required (approximately 1.5 km greater), the Redmond property rail
right-of-way was formerly used for loading iron ore trains (by IOC)
and includes an existing rail bed with a rail loop at the end to
turnaround, versus the current proposed Houston rail siding operation, which requires
the train to be split multiple times.
(iii) Update the surface water management plan
for the mine site based on the proposed localized handling and
treatment of surface contact water.
(iv) Reactivate all necessary regulatory
permits and approvals for construction.
(v) Continue engagement with adjacent
First Nations communities.
(vi) Advance commercial negotiations with
construction contractors, equipment vendors, rail, port and
logistics counterparties.
(vii) Further refine the environmental and health
and safety plans.
(viii) Further develop the human resources and recruitment
plans.
(ix) Complete an off-take contract, including
construction financing and product sale components.
LIMH believes successful completion of these initiatives will
favourably impact the terms of construction financing, which will
be required in 2022.
Houston Funding
In order to fund its planned near-term initiatives, the Company
plans to complete a working capital financing of approximately
$2.5-$5
million. The Company is exploring various working
capital financing alternatives including a potential private
placement of equity. Various future construction financing
alternatives being considered for 2022 include, without limitation,
an advance payment component of an off-take contract, equipment
leasing arrangement(s), potential project partners, potential
government funding and potential equity financing.
Anglesey Annual Report
Anglesey has been working on completion and auditing of its
Annual Report for the year ended 31st March 2021.
This will be published shortly and will contain updates on
operational and funding progress at the Companies Parys Mountain
copper-zinc-lead project in North
Wales.
About Anglesey Mining plc
Anglesey Mining is listed on the London Stock Exchange and
currently has 225,475,732 ordinary shares in issue.
Anglesey is developing its 100% owned Parys Mountain
copper-zinc-lead deposit in North
Wales, UK with a 2020 reported resource of 5.2 million
tonnes at 4.3% combined base metals in the Indicated category and
11.7 million tonnes at 2.8% combined base metals in the Inferred
category.
Anglesey holds an almost 20% 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 50.1%. Anglesey also
holds 12% of Labrador Iron Mines Holdings Limited which holds
direct shipping iron ore deposits in Labrador and Quebec.
Anglesey continues to review other compatible base metal
projects at advanced stages suitable for incorporation into the
Anglesey Group.
For further information, please contact:
Bill Hooley, Chief Executive +44
(0)7785 572517
Danesh Varma, Finance Director
+44 (0)7740 932766