REG-Anglesey Mining PLC: LIMH Plan of Arrangement, Placing of New Anglesey Shares <Origin Href="QuoteRef">AYM.L</Origin>

Anglesey MiningAnnouncement

16/12/2016 12:20

Anglesey Mining plc

16th December 2016

LSE: AYM

LIMH completes Plan of Arrangement

Placing of New Anglesey Shares for £0.3 million completed

Anglesey Mining plc (“Anglesey” or the “Company”) is pleased to
announce that Labrador Iron Mines Holdings Limited (“LIMH”) has reported
that its Plan of Compromise and Arrangement (the “Plan”) under the
Canadian Companies’ Creditors Arrangement Act has been approved by creditors
and sanctioned by the Ontario Superior Court of Justice in Toronto.

The Sanction Order of the Court marks the final legal milestone in LIMH’s
financial restructuring process, with implementation of the Plan scheduled for
Monday, December 19th, 2016.

Upon implementation of the arrangement creditors of LIMH will be issued, as a
group, approximately 22% of the shares of LIMH which means that Anglesey will
then hold approximately 11.9% of LIMH and will be its second largest
shareholder. Creditors will also be issued 49% of LIMH’s operating
subsidiary Labrador Iron Mines Limited. 

The Plan implements a restructuring of LIMH’s business to preserve its
mining assets, continue its mine site activities in a care and maintenance
standby mode and position LIMH to refinance an orderly resumption of its iron
ore mining activities when economic conditions warrant.

Bill Hooley, Chief Executive, stated “We are very pleased to see LIMH
passing this major milestone which will leave it debt free and with all its
major assets intact.  As a significant shareholder in LIMH we look forward to
the future development of its iron ore assets in Labrador when the economic
climate is right, and to other opportunities that LIMH is now in a position to
pursue.”

Placing of New Anglesey Shares completed

Anglesey also reports that the previously announced issue 12,000,000 new
ordinary shares in the Company has been completed raising a total of
£310,200.  The issued ordinary share capital of the company is now
172,608,051 ordinary shares of 1 pence each with voting rights; there are no
shares held in treasury.  This 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 Financial Conduct Authority’s Disclosure and
Transparency Rules.

The proceeds of the placement will be used for project development of
Anglesey’s 100% owned Parys Mountain zinc-copper-lead deposit and for
general working capital.  An updated scoping study is currently being
prepared by Micon International Limited and Fairport Engineering Limited, both
of which are acknowledged experts and leaders in the resources sector.

About Anglesey Mining plc

Anglesey is carrying out development and exploration work at its 100% owned
Parys Mountain zinc-copper-lead deposit in North Wales, UK with a 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

Anglesey holds a 6% 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 51%.

Anglesey also holds 11.9% of Labrador Iron Mines Holdings Limited which has
direct shipping iron ore deposits in Labrador and Quebec, currently held in
stand-by care and maintenance pending an improvement in the iron ore price.

For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 653 9881;
Elliot Hance, Beaufort Securities+44 (0)207 382 8300
 



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