Anglesey Mining plc said that its Canadian investee company Labrador Iron Mines Holdings Ltd (LIM) announced a US$4 million strategic investment by Scully Royalty Ltd.
SCULLY ROYALTY
Anglesey Mining holds 19.3 million shares in LIM, which will equate to 11.0% of the company after the issuance of new shares to Scully Royalty Ltd.
Scully’s strategic investment comprises $3m equity and a $1m convertible credit facility, after which it will hold approximately 7.4% of LIM on closing.
On closing of the investment, Scully’s president and chief executive Samuel Morrow will join LIM’s board of directors.
USES
The funds will contribute to working capital to advance the Houston project to a preliminary feasibility study (PFS) in 2023.
Initiatives include:
– negotiating an off-take agreement, with construction financing and product sale components
– metallurgical test work to refine product characterisation and specifications for marketing purposes
– advancing commercial negotiations with construction contractors, equipment vendors, rail, port and logistics counterparties
EXPERIENCE
“The inflow of funds is a key development to help unlock the significant value of the Houston project, which has obvious benefits to Anglesey shareholders,” said Anglesey Mining’s chief executive Jo Battershill.
“Scully is a very well credentialled strategic investor with extensive iron ore mining experience and relationships within the Labrador Trough.”
Anglesey Mining expects to report in the near term on developments on the Grängesberg iron ore project in Sweden, in which the company hold a 20% direct interest and 50% interest via a right of first refusal.