NOT FOR DISTRIBUTION INTO OR PUBLICATION IN CANADA OR THE UNITED STATES OF
AMERICA OR ANY OTHER JURISDICTION WHERE THE PUBLICATION OR DISTRIBUTION OF THIS
ANNOUNCEMENT MAY BE UNLAWFUL
Anglesey Mining plc LSE:AYM
22 November 2007
Shareholder Letter in regard to the partial disposal of the
Labrador iron properties posted to shareholders
Anglesey Mining Plc ("Anglesey") is pleased to inform its shareholders that the
Shareholder Letter referred to in the Circular dated 5 November 2007 has been
posted to all shareholders, other than those resident in Canada, and contains
further information relating to the partial disposal of Anglesey's interest
in the iron ore properties at Labrador, Canada.
As announced on 12 November 2007, 11,473,000 Units will be offered for sale by
LIM Holdings pursuant to the Placing resulting in gross proceeds of CDN$46
million. The Offer Price of CDN$4.00 per Unit implies a total indicative market
capitalisation of LIM Holdings of CDN$142 million. If the Over-Allotment Option
is exercised in full, gross proceeds will be CDN$53 million and the total
indicative market capitalisation of LIM Holdings will be CDN$149 million.
At the Offer Price of CDN$4.00 per Unit, the derived value of Anglesey's
interest in LIM Holdings is approximately £37 million, which compares with a
cost of £538,278 as at 31 March 2007. Anglesey's interest in LIM will be
18,600,000 Labrador Shares which is 52.43% of the issued share capital of LIM
Holdings immediately following the Placing, and if the Over-Allotment Option is
exercised in full, Anglesey's interest in LIM Holdings will be reduced to
50.01%.
LIM Holdings intends to use the net proceeds of the Placing for the development
of the Labrador Properties, including the preparation of a feasibility study and
moving towards production. Anglesey will continue to develop the mineral
deposits at Parys Mountain, North Wales and to search for other mineral
properties that are close to production to add to its existing operations.
Assuming that Anglesey continues to record the value of the Labrador Properties
on an original cost basis in its financial statements in accordance with its
historical practice, the completion of the Placing is anticipated to have a
positive effect on the assets of Anglesey, as the net proceeds of the Placing of
approximately £24.5 million (assuming the exercise of the Over-Allotment Option)
will be added to cash resources of Anglesey and its subsidiaries. A minority
interest of approximately £12.5 million (based on 31 March 2007 figures) will
also be recorded. The completion of the Placing is anticipated to have a
broadly neutral effect on the earnings and liabilities of Anglesey.
Bill Hooley, Chief Executive of Anglesey commented "The effects of this
transaction on the balance sheet of the company will be significant and
important. We are very pleased to have completed all the steps required to hold
the Extraordinary General Meeting of the company on 30th November and we urge
all shareholders to vote in favour of the resolution to be put at that meeting
by attending the meeting, or completing the proxy form previously circulated."
The Shareholder Letter and the Circular is available to the public for
inspection at the Document Viewing Facility, 25 The North Colonnade, Canary
Wharf, London, E14 5HS.
For further details:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director +(44) 1248 361333
John F. Kearney, Chairman +(1) 416 362 6686
Robin Birchall, Canaccord Adams Limited +(44)) 207 0506747
Parkgreen Communications +(44) 20 7851 7480