Anglesey Mining PLC Strategic investment by Scully Royalty into LIM

 
TIDMAYM 
 
Trading Symbol 
 
                                                                       AIM: AYM 
 
6th July 2022 
 
                              Anglesey Mining plc 
 
                         ("Anglesey" or "the Company") 
 
        Strategic investment by Scully Royalty into Labrador Iron Mines 
 
Anglesey Mining plc (AIM:AYM) is pleased to announce that Labrador Iron Mines 
Holdings Limited ("LBRMF") (OTC: LBRMF) has announced a US$4,000,000 strategic 
investment by New York Stock Exchange listed Scully Royalty Ltd ("Scully") (the 
"Strategic Investment"). Anglesey Mining holds 19.3 million shares in LBRMF, 
which will equate to 11.0% of the company after the issuance of new shares to 
Scully Royalty Ltd. 
 
  * The Strategic Investment by Scully in LBRMF consists of a US$3,000,000 
    equity component alongside a US$1,000,000 convertible credit facility. 
    Pursuant to the equity investment, Scully will hold approximately 7.4% of 
    LBRMF on closing. 
  * The proceeds of the Strategic Investment will be used as working capital to 
    advance the Houston Project through a number of initiatives, expected to 
    culminate in a Preliminary Feasibility Study (PFS) in 2023. 
  * These initiatives include: 
      + Negotiating an off-take agreement, with construction financing and 
        product sale components; 
      + Conducting metallurgical test work to refine product characterization 
        and specifications for marketing purposes; and, 
      + Advancing commercial negotiations with construction contractors, 
        equipment vendors, rail, port and logistics counterparties. 
  * Effective on Closing of the investment, Samuel Morrow, President and Chief 
    Executive Officer of Scully, will be appointed to the Labrador Iron Mines 
    Board of Directors. 
  * The Houston Preliminary Economic Assessment, released in March 2021, 
    demonstrated an NPV8 of C$109m using a conservative iron ore price of US$90 
    /t with the project producing 2.0Mtpa of high-grade direct shipping ore 
    over a 12-yr life, a low capital outlay and short lead-time. 
 
Jo Battershill, Chief Executive of Anglesey Mining, commented: "It is very 
pleasing to see Labrador Iron Mines announce the Strategic Investment from 
Scully. The inflow of funds is a key development to help unlock the significant 
value of the Houston project, which has obvious benefits to Anglesey 
shareholders. Scully is a very well credentialled strategic investor with 
extensive iron ore mining experience and relationships within the Labrador 
Trough." 
 
"The iron ore assets within Anglesey have significant value and present 
strategic opportunities in geopolitically safe and mining friendly 
jurisdictions. The Grängesberg Iron Ore Project in Sweden, in which we hold a 
20% direct interest and 50% interest via a right of first refusal, is one of 
the largest iron ore development opportunities within the EU and could 
potentially supply up to 2.5Mtpa of high-grade iron ore concentrate to European 
and Middle Eastern steel mills for at least 16-yrs." 
 
"We look forward to updating the market with respect to the Grängesberg PFS 
update in the near term." 
 
About Anglesey Mining plc 
 
Anglesey Mining is traded on the AIM market of the London Stock Exchange and 
currently has 248,070,732 ordinary shares on issue. 
 
Anglesey is developing its 100% owned Parys Mountain Cu-Zn-Pb-Ag-Au 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 in the Grangesberg Iron project in 
Sweden, together with management rights and a right of first refusal to 
increase its interest to 70%.  Anglesey also holds 11% of Labrador Iron Mines 
Holdings Limited, which through its 52% owned subsidiaries, is engaged in the 
exploration and development of direct shipping iron ore deposits in Labrador 
and Quebec. 
 
 
 
 
For further information, please contact: 
 
 
Anglesey Mining plc 
 
Jo Battershill, Chief Executive - Tel: [phone] 
 
John Kearney, Chairman - Tel: [phone] 
 
Davy 
 
Nominated Adviser & Joint Corporate Broker 
 
Brian Garrahy / Lauren O'Sullivan - Tel: [phone] 
 
WH Ireland 
 
Joint Corporate Broker 
 
Katy Mitchell / Harry Ansell - Tel: [phone] 
 
Canaccord Genuity Limited 
 
Joint Corporate Broker 
 
James Asensio / Harry Rees - Tel: [phone] 
 
Scout Advisory Limited 
 
Investor Relations Consultant 
 
Sean Wade - Tel: [phone] 
 
LEI: 213800X8BO8EK2B4HQ71 
 
 
 
END 
 
 

(END) Dow Jones Newswires

July 06, 2022 07:48 ET (11:48 GMT)