Labrador Iron Mines Holdings Limited - Closing of Initial Public Offering over-allotment option



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US
    NEWS WIRE SERVICES/

    ADDITIONAL $6.9 MILLION

    TORONTO, Jan. 8 /CNW/ - Labrador Iron Mines Holdings Limited (TSX:LIR) is
pleased to announce that it has closed the sale of an additional 1,720,950
units of the Company for gross proceeds of $6,883,800 to complete its Initial
Public Offering, following the full exercise by the agent, Canaccord Capital
Corporation, of its over-allotment option.
    As part of the Initial Public Offering of $45,892,000, which closed
December 3, 2007, the Company had granted Canaccord Capital Corporation an
over-allotment option, exercisable for a period of 30 days following the
closing of the offering, to offer for sale up to an additional 15% of the
number of units issued pursuant to the offering at a price of $4.00 per unit.
    Including exercise of the over-allotment option, the Initial Public
Offering consisted of 13,193,950 units at an issue price of $4.00 per unit
raising total gross proceeds of $52,775,800. Each unit consisted of one common
share and one-half of one common share purchase warrant, each whole warrant
exercisable to purchase one additional common share at a price of $5.00 per
share at any time prior to December 3, 2009.

    About Labrador Iron Mines Holdings Limited

    The Company was established to explore and develop "direct shipping" iron
ore deposits on properties in which it holds interests located in the Labrador
Trough, in the province of Newfoundland and Labrador, near Schefferville,
Québec.
    Following the second closing of the Initial Public Offering the Company
now has 37,193,951 common shares outstanding.
    The common shares and warrants of Labrador Iron Mines Holdings Limited
are listed on the Toronto Stock Exchange under the symbols "LIR" and "LIR.WT",
respectively.

    Cautionary Notes:

    The securities described herein have not been and will not be registered
under the United States Securities Act of 1933, as amended, or the securities
laws of any state and may not be offered or sold in the United States absent
an exemption from registration.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

    This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation.





For further information:

For further information: John F. Kearney, Chairman and CEO, T: (416)
362-6686; Bill Hooley, President and COO, T: (011) 44 778 557 2517; Terence
McKillen, Vice President, T: (416) 362-8243

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Labrador Iron Mines Holdings Limited

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