/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, March 5 /CNW/ - Labrador Iron Mines Holdings Limited (TSX:LIM) (the "Company" or "LIM") is pleased to announce that it has amended the terms of the previously announced bought deal with a syndicate of underwriters led by Canaccord Financial Ltd. and including Jennings Capital Inc. and Haywood Securities Inc. (collectively, the "Underwriters"), to increase the size of the offering by an additional 1,766,000 common shares from the treasury of the Company (the "Treasury Common Shares") subject to receipt by the Company of all necessary regulatory approvals. Under the amended terms of the offering the Underwriters have agreed to purchase an aggregate of 5,406,000 Treasury Common Shares for proceeds of C$30,003,300 and total proceeds of C$35,057,300, including C$5,054,000 in proceeds pursuant to the sale of flow-through shares (the "Underwritten Offering").
In addition, the Underwriters have revised the option (the "Over-Allotment Option", and together with the Underwritten Offering, the "Offering") by Anglesey Mining plc ("Anglesey"), to purchase from Anglesey up to 810,900 previously issued common shares (the "Secondary Common Shares") of the Company for the purpose of covering the Underwriters' over-allocation position at the Common Share Price of C$5.55 per common share for gross proceeds of up to C$4,500,495, being up to 15% of the amount raised pursuant to the sale of Treasury Common Shares, on the same terms and conditions as set out herein, exercisable at any time, in whole or in part, up to 30 days after the date of the closing of the Underwritten Offering.
The Company intends to use the net proceeds from the Underwritten Offering for exploration and development of the Company's mineral projects, and for general corporate and working capital purposes.
Anglesey currently holds 18,600,000 common shares of the Company. The net proceeds from the sale of the Secondary Common Shares, if the Over-Allotment Option is exercised, will be used by Anglesey for general corporate costs and working capital purposes.
The Offering is being made pursuant to a short form prospectus to be filed in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. The Offered Securities will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The Underwritten Offering is expected to close on or about March 25, 2010.
LIM has 37,203,951 common shares currently outstanding, prior to the Underwritten Offering.
This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
Labrador Iron Mines Holdings Limited (LIM)
LIM's Schefferville area project involves the exploration and development of direct shipping iron ore deposits in western Labrador and north eastern Quebec near Schefferville. The Company's properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982. The Company plans to mine its deposits in varying stages, the first stage comprising the James and Redmond deposits, which are located in Labrador in close proximity to existing infrastructure. Subject to timely receipt of all permits and licences, the Company plans to commence iron ore production in the summer of 2010.
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, the uncertainty of future profitability and access to additional capital, risks inherent in mineral exploration and risks associated with development, construction and mining operations, delays in obtaining or failures to obtain required governmental, environmental or other project approvals. Caution should be exercised on placing undue reliance on forward looking information.
SOURCE Labrador Iron Mines Holdings Limited
For further information: For further information: please view the Company's website at www.labradorironmines.ca or contact: John F. Kearney, Chairman and Chief Executive Officer, Tel: (647) 728-4105, E-mail: firstname.lastname@example.org; Donna Yoshimatsu, Vice-President, Investor Relations, Tel: (647) 728-4119, E-mail: Yoshimatsu.email@example.com