🕐27.05.11 - 15:27 Uhr
ANGLESEY MINING - LIM EQUITY MINING & PLANT COMMISSIONING UNDERWAY
Anglesey Mining plc LSE:AYM
27 May 11
Over-allotment Option exercised for $11.25 million
Anglesey Miningâs 33% owned associate Labrador Iron Mines Holdings Limited
(âLIMâ or the âCompanyâ) (TSX: LIM) is pleased to announce today that the
underwriters of the recently completed $110,000,500 public offering of
common shares (the âOfferingâ) have exercised the over-allotment option (the
âOptionâ) 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 Companyâs 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 LIMâs 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 LIMâs 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 LIMâs iron ore from Silver Yards,
over the TSH privately owned railway, to Emeril Junction.
WLRS will also
operate LIMs six kilometre railway which connects LIMâs 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 LIMâs 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)
LIMâs Schefferville Area projects involve the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec.
The Companyâs 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
Sent to : [1]unsubscribe | [2]update profile | [3]forward to a
friend
Links:
1.
http://angleseymining.us2.list-manage.com/unsubscribe?u=b2509bf4262d15b1a66d37bc4&id=a46ca4f696&e=ba26fee041&c=86a99ce31a
2.
http://angleseymining.us2.list-manage1.com/profile?u=b2509bf4262d15b1a66d37bc4&id=a46ca4f696&e=ba26fee041
3.
http://us2.forward-to-friend.com/forward?u=b2509bf4262d15b1a66d37bc4&id=86a99ce31a&e=ba26fee041
Email Marketing Powered by MailChimp
Â