Anglesey Mining boosts cash pile after Labrador Iron Mines underwriters purchase more equity

Anglesey Mining (AIM: AYM) announced that the underwriters of the recent Labrador Iron Mines’ (TSX: LIM) CDN$35m fundraising have exercised their over-allotment option. Consequently, Anglesey has sold 810,900 of its LIM shares at C$5.55 per share, raising gross proceeds of C$4.5m (£2.9m). Following the exercise Anglesey Mining now holds approximately 17.7 million Labrador Iron Mine shares, or 41% of the company.

Toronto listed Labrador is engaged in the exploration and development of direct shipping iron ore deposits in western Labrador, and in north-eastern Quebec near the historic Schefferville iron ore district.  Subject to timely receipt of permits and licenses production of high-grade hematite is planned to commence in the summer of 2010.   Shares in the company have performed exceptionally well in 2010, climbing from around $2.00 per share at the end of 2009 to $6.50 today.

On London’s AIM market, investors welcomed the news, pushing shares in Anglesey 5% higher to trade at 33.75p per share.  Shares in Anglesey have also put in a stellar performance – more than doubling in the past three months.

“Anglesey now has sufficient funds for its immediate requirements and is looking at using the opportunity to demonstrate shareholder value at Parys Mountain, and to investigate and progress new activities”, Anglesey Chief Executive Bill Hooley commented.

Parys Mountain, near Amlwch on the Isle of Anglesey in North Wales, is located on the site of one of the oldest mines in the UK – archeological evidence suggests the existence of a copper mine dating back to the Bronze age.
Much later, the area was extensively mined throughout the 18th century.  Parys Mountain has an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

http://www.proactiveinvestors.co.uk/companies/news/15171/anglesey-mining-boosts-cash-pile-after-labrador-iron-mines-underwriters-purchase-more-equity-15171.html