Business
Annual Meeting of Shareholders Chairman's Update Voting Results at AGM
Annual Meeting of Shareholders Chairman's Update Voting Results at AGM.
About this update from Labrador Iron Mines Holdings Ltd.
[{"type":"text","content":"Toronto, Ontario--(Newsfile Corp. - October 20, 2021) - Labrador Iron Mines Holdings Limited (OTC Pink: LBRMF) (\"LIMH\" or the \"Company\") held its Annual Meeting of Shareholders today in Toronto, Canada.CHAIRMAN'S UPDATEAt the Annual Meeting, John F. Kearney, Chairman and Chief Executive Officer, provided the following update.\"The Company's current focus is advancing the Houston Project, which is our flagship property.The Houston Project is an open pit direct shipping iron ore project, on which an updated, independent Preliminary Economic Assessment was completed in February 2021, and demonstrated production of 2 million tonnes of iron ore per year, with an initial 12-year mine life, for total production of 23.4 million tonnes over the life of the mine. The PEA estimates initial direct capital costs of $51.3 million, and along with indirect costs, total initial capital expenditures of $86.8 million. The Company is advancing development of the Houston Project through a number of initiatives, including the following:discussing an off-take agreement, including construction financing and product sale components with a potential off-take partner;advancing commercial negotiations with construction contractors, equipment vendors, rail, port and logistics counterparties; andplanning metallurgical test work of drill core collected from the Houston Project in a 2013 bulk sample. Results of the test work will be used to refine the product specifications and process flowsheet. This analysis will yield important product characterization information which will be helpful in marketing the iron ore product.In pursuing potential off-take and financing arrangements, the Company has been in discussion with an iron ore trader which have advanced to the stage of a draft Memorandum of Understanding, which contemplates due diligence collaboration, an off-take option, and potential pre-pay financing in order to move the Houston Project forward.In order to fund these initiatives, the Company is exploring various near term working capital financing alternatives, including a potential private placement of equity of approximately $2.5 to $5 million.Various future construction financing alternatives being considered for 2022 include: an advance payment component of an off-take agreement;equipment leasing arrangements;potential project partners;potential...