REG-Anglesey Mining PLC: General Meeting Results & Chairman's Update Comments

Anglesey MiningAnnouncement

02/11/2020 07:05

Shareholders General Meeting Results + Chairman’s Update Comments   

Anglesey Mining plc is pleased to report that at the General Meeting of
Shareholders held on 30(th) October, to consider resolutions pertaining to the
annual report and accounts and in respect of authorities to issue new share
capital which were not presented at the AGM held on 30 September 2020, all
resolutions presented were approved and details are shown below.

Chairman’s Comments

Following the formal business of the meeting, the Chairman John Kearney gave a
short update presentation on the affairs of the Company.

Commodity Prices

We are very encouraged that most commodity prices which are of interest to us
have shown continued strength over recent months.  This strength appears to
be supported by a combination of strong demand, driven in part by stimulus
programmes in China and likely to be followed by other major industrial
nations, and pressure on production largely as a result of the impacts of the
Covid-19 pandemic in the major metal producing nations.

As discussed in the Annual Report published in September, base and precious
metal prices, particularly copper, zinc and gold and silver, all recovered
strongly from lows at the beginning of this year.  This recovery has been
sustained and we are comfortable that the same fundamentals, being challenges
in supply and steady demand in China, will continue to support these prices. 
We take a very positive view on copper and expect the current price to
increase further in the medium term.  This should be of great benefit to
Anglesey as we consider the deeper resources at Parys Mountain where copper
tends to dominate over zinc in the commodities value mix.

As noted in our latest press release, October 29, 2020, the price of iron ore,
as 62% Fe, has increased from around $US80 per tonne in January to over $US120
per tonne currently.  At these price levels Anglesey’s investments in both
Labrador Iron Mines in Canada and the Grangesberg Iron project in central
Sweden become increasingly attractive.  In common with market analysts we
believe that increased stimulus demand from China and the continuation of
supply problems in Brazil will support the price of iron ore in the $US100 per
tonne range for some time to come.

Parys Mountain  -- Economic Assessment Study Underway

As previously announced, Micon International Limited (“Micon”) have been
awarded a contract to prepare a Preliminary Economic Assessment on the Parys
Mountain project.  The PEA will evaluate a number of different options for
the development of Parys Mountain including potential production from not just
the indicated resources that formed the basis for the 2017 Micon Scoping
Study, but also from the far greater volumes of inferred resources, including
the higher value copper rich orebodies in the Lower Engine, Garth Daniel and
Northern Copper zones. 

This PEA will be based on the various optimisation studies that have been
carried out by QME over the past two years.  QME has now completed this work
and the analysis and results have been provided to Micon. 

As noted in our Annual Report, QME identified the potential for improvements
in the development plans contained in the 2017 Scoping Study which was based
on mining only the 2.1 million tonnes of indicated resources. The QME work
suggests that that the Parys Mountain project can be further improved if the
potential mineable tonnage can be increased by using a lower cut-off grade,
and that at a production cut-off of $48 per tonne, approximately 5.25 million
tonnes in situ within the designed stoping blocks would be available within
the White Rock and Upper Engine Zones for consideration in a detailed
life-of-mine schedule. These 5.25 million tonnes are substantially higher than
the mineable tonnage of 2.1 million tonnes used in the 2017 Scoping Study.

The QME work also identified a further 5.5 million tonnes of modelled inferred
resources in deposits other than White Rock and Upper Engine zones that could
be considered for inclusion in detailed mine design. These other zones, the
Lower Engine, Garth Daniel and Northern Copper zones, are approximately 1.3 km
east-west and 370 metres north-south and lie immediately to the northeast of
the White Rock and Engine zones.

The PEA being prepared by Micon will incorporate the outcomes from this QME
work. We are informed by Micon that progress on the PEA is well advanced and
we are hoping to make a detailed release on the results of the PEA before the
end of this year. 

Iron Ore Positive Outlook

With the current positive outlook for iron ore prices we now have the
opportunity to review interest in both Labrador Iron Mines (LIM) in Canada and
in Grangesberg Iron in Sweden. 

As previously reported, LIM is progressing work on Stage 2 of its planned
direct shipping ore mining operations, which involves the development of the
Houston project and has engaged Roscoe Postle Associates (RPA), to complete an
independent Preliminary Economic Assessment on the project to be used for
consideration of financing options. The Houston deposit is estimated to
contain a resource of 40-million tonnes grading 57.6% iron, but the PEA will
focus on a higher-grade subset of this resource suitable for direct shipping
using dry crushing and screening only. LIM expects the PEA, to be completed
before the end of the calendar year. 

At Grangesberg, RPA estimated a resource of 115.2 million tonnes at 40.2% Fe
in the indicated category and 33.1 million tonnes at 45.2% Fe in the inferred
category in 2014.  The +67% Fe high-quality product expected to be produced
from Grangesberg, continues to make the interest in developing the Grangesberg
project attractive. 

New Projects

With the benefit of our listing on the Main Board of the London Stock
Exchange, and the current strength in base metal prices and renewed investor
interest, we are now also actively reviewing some new opportunities for
mineral exploration and development projects, with a focus on advanced copper
and other base metal projects that would be complementary to Anglesey’s
current operations.  

Voting on General Meeting resolutions 2020

The directors are pleased to report that at the general meeting of
shareholders held on 30 October 2020 all resolutions were passed unanimously
on a show of hands. This general meeting dealt with resolutions pertaining to
receiving the annual report and accounts and in respect of authorities to
issue new share capital which were not presented on at the AGM held on 30
September 2020.

The valid proxies recorded in respect of voting at the meeting were as
follows:

    Resolution                                                                                                In Favour  Against  Withheld 
 1  To receive the annual accounts and directors' and auditor’s reports for the year ended 31 March 2020     60,534,797  803,750    10,000 
 2  To approve the directors' remuneration report                                                            60,488,698  858,849     1,000 
 3  To approve the directors' remuneration policy in the directors’ remuneration report                      60,323,058  867,123   158,366 
 4  To authorise the directors to issue new share capital                                                    60,392,759  933,152    22,636 
 5  To dis-apply pre-emption rights in respect of certain issues of shares                                   60,371,609  950,302    26,636 

Notes

Votes were received in respect of 61,348,547 shares representing 30% of the
issued share capital.

Any proxy appointments which gave discretion to the chairman have been
included in the “For” total.

The full text of the resolutions is shown in the notice of the AGM which is
available in the annual report and on the website.

Total voting rights

The issued ordinary share capital of the company is 201,975,732 shares with
voting rights; there are no shares in treasury.

The above 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 FCA’s
Disclosure and Transparency Rules.

About Anglesey Mining plc

Anglesey is in evaluation work at its 100% owned Parys Mountain
copper-zinc-lead deposit in North Wales, UK with a 2012 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. 
Micon International is currently preparing a PEA on the Parys Mountain
project.

Anglesey holds a 10% 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 is also currently and actively reviewing 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



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