REG-Anglesey Mining PLC: Labrador Iron Mines Annual Results, Plans for Houston

Anglesey MiningAnnouncement

30/06/2021 14:30

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 31(st) 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 31(st) 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



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