Business
Further re Labrador IPO - Shareholder Letter
Further re Labrador IPO - Shareholder Letter.
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n NOT FOR DISTRIBUTION INTO OR PUBLICATION IN CANADA OR THE UNITED STATES OF\nAMERICA OR ANY OTHER JURISDICTION WHERE THE PUBLICATION OR DISTRIBUTION OF THIS\nANNOUNCEMENT MAY BE UNLAWFUL\n\nAnglesey Mining plc LSE:AYM\n\n22 November 2007\n\nShareholder Letter in regard to the partial disposal of the\nLabrador iron properties posted to shareholders\n\nAnglesey Mining Plc (\"Anglesey\") is pleased to inform its shareholders that the\nShareholder Letter referred to in the Circular dated 5 November 2007 has been\nposted to all shareholders, other than those resident in Canada, and contains\nfurther information relating to the partial disposal of Anglesey's interest\nin the iron ore properties at Labrador, Canada.\n\nAs announced on 12 November 2007, 11,473,000 Units will be offered for sale by\nLIM Holdings pursuant to the Placing resulting in gross proceeds of CDN$46\nmillion. The Offer Price of CDN$4.00 per Unit implies a total indicative market\ncapitalisation of LIM Holdings of CDN$142 million. If the Over-Allotment Option\nis exercised in full, gross proceeds will be CDN$53 million and the total\nindicative market capitalisation of LIM Holdings will be CDN$149 million.\n\nAt the Offer Price of CDN$4.00 per Unit, the derived value of Anglesey's\ninterest in LIM Holdings is approximately £37 million, which compares with a\ncost of £538,278 as at 31 March 2007. Anglesey's interest in LIM will be\n18,600,000 Labrador Shares which is 52.43% of the issued share capital of LIM\nHoldings immediately following the Placing, and if the Over-Allotment Option is\nexercised in full, Anglesey's interest in LIM Holdings will be reduced to\n50.01%.\n\nLIM Holdings intends to use the net proceeds of the Placing for the development\nof the Labrador Properties, including the preparation of a feasibility study and\nmoving towards production. Anglesey will continue to develop the mineral\ndeposits at Parys Mountain, North Wales and to search for other mineral\nproperties that are close to production to add to its existing operations.\n\nAssuming that Anglesey continues to record the value of the Labrador Properties\non an original cost basis in its financial statements in accordance with its\nhistorical practice, the completion of the Placing is anticipated to have a\npositive effect on the assets of Anglesey, as the net proceeds of the Placing of...