------------------------------------------------------------ http://us2.campaign-archive2.com/?u=b2509bf4262d15b1a66d37bc4&id=a3e25fb188&e=ba26fee041 Anglesey Mining plc Anglesey Mining plc LSE:AYM 14 May 2013
** LIM signs new sales and off-take agreements ------------------------------------------------------------ * ** Two year iron ore sales agreement with Iron Ore Company of Canada for 2013 and 2014 ------------------------------------------------------------ * ** US$35 million off-take financing with RB Metalloyd ------------------------------------------------------------
Anglesey Mining’s associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report that it has entered into a new iron ore sales agreement with the Iron Ore Company of Canada (“IOC”) for the sale of all of LIM’s iron ore production for the next two calendar years 2013 and 2014. At the same time, LIM has announced that it has entered into an off-take financing agreement with RB Metalloyd Limited (“RBM”), a leading international commodity trading house, under which LIM will receive an advance payment of US$35 million to be credited against future sales of a minimum of 3.5 million tonnes of iron ore during 2013 and 2014. LIM commenced its third year of direct shipping iron ore production from its Schefferville area iron ore mines in Western Labrador in April 2013 and is targeting production of 1.75 to 2.0 million tonnes of sinter fines and lump in 2013.

The first Capesize shipment of 2013 is expected to be loaded around the end of May.
** Two year iron ore sales agreement with IOC ------------------------------------------------------------ Over the past two years, LIM has sold 13 Capesize shipments of iron ore to IOC, for a total of approximately 2 million tonnes, all of which was resold in China, with the price calculated based on the daily China spot price, subject to varying selling discounts, and where the sale of LIM’s iron ore experienced unpredictable variations based on prevailing market conditions. Under LIM’s new sales agreement, IOC will pay for the iron ore progressively, as the ore is resold, with the price calculation based on the monthly average of the market index, which should decrease LIM’s exposure to market volatility experienced in the past two years.

IOC payments will be later reconciled based on IOC’s net actual aggregate resale price, adjusted for any product quality specification premiums or penalties, after ocean freight and IOC’s price participation. “We are very pleased to be able to continue our working relationship with IOC as we head into our third year of production from our Schefferville area iron ore mines” said John Kearney, LIM’s Chairman and Chief Executive Officer.

“In addition, extending the contract for the next two years and fixing the price to be calculated based on the monthly average of the market index are two important improvements over previous years.”
** US$35 million off-take financing ------------------------------------------------------------ Under the terms of the financing agreement with RB Metalloyd, RBM has advanced a pre-payment of US$35 million to LIM, which will repaid over a period of two years, credited against the proceeds of LIM’s sales of iron ore shipments between July 2013 and December 2014. RBM has entered into an iron ore off-take agreement with IOC under which RBM has agreed to buy the LIM iron ore from IOC on an FOB Sept-Îles basis. “This advance payment financing of $35 million from RBM provides LIM with important working capital and increased liquidity and will enable us to ramp up our 2013 production of iron ore and complete our planned capital investment and improvements on our Silver Yards processing plants”, added John Kearney. “We look forward to working with RB Metalloyd, who bring LIM experience and expertise in the marketing and sale of iron ore as well as extensive knowledge of the iron ore and steel markets worldwide.” Iron Ore Company of Canada (IOC) IOC is Canada’s largest iron ore producer from its mines located in Western Labrador and is a leading global supplier of iron ore pellets and concentrates.

IOC owns 100% of the Quebec North Shore and Labrador (“QNS&L”) railway and, at the port of Sept-Îles, owns established storage and ore handling facilities, including its ship dock capable of taking ocean going vessels up to 240,000 (dwt) tonnes. In 2011, LIM entered into a life of mine, rail transportation contract with QNS&L for the rail transportation of LIM’s products on the QNS&L railway.

This contract provides for a confidential tariff, with capacity and volume commitments on the part of each party. RB Metalloyd (RBM) RBM is a leading international commodity trading house with specific expertise within the steel making raw materials sectors.

RBM is a subsidiary of RB Resources, an investment company for all natural resources investments held by the Reuben Brothers Group, one of the world’s largest privately held investment companies. About Labrador Iron Mines Holdings Limited (LIM) Labrador Iron Mines (LIM) is Canada’s newest iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough.

Initial production commenced at the James Mine in June 2011.

LIM has commenced its third year of operations and is targeting 1.75 to 2.0 million tonnes of saleable iron ore production in 2013. For further information, please visit LIM’s website at www.labradorironmines.ca About Anglesey Mining plc Anglesey currently holds 19,289,100 shares in LIM which comprise 15.3% of LIM’s outstanding share capital.

Toronto-listed Labrador Iron Mines Holdings Limited is producing high grade hematite from its James pit, one of LIM’s direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012. For further information, please contact: Bill Hooley, Chief Executive +44 (0)1492 541981; Ian Cuthbertson, Finance Director +44 (0)1248 361333; Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800; Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155 ============================================================ Copyright © 2013 Anglesey Mining plc, All rights reserved. You are receiving this because we believe you signed up for information from Anglesey Mining plc Our mailing address is: Anglesey Mining plc Parys Mountain Amlwch, Anglesey LL68 9RE Email Marketing Powered by MailChimp ** follow on Twitter (Twitter Account not yet Authorized ) ** forward to a friend ** unsubscribe from this list ** update subscription preferences