NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, B.C., Canada (April 5, 2011) Dominion Lending Centres Clearlease Reports Labrador Iron Mines Holdings Limited (TSX:LIM) is pleased to announce that in connection with its previously announced overnight marketed public offering on April 4, 2011 (the “Offering”), it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including BMO Nesbitt Burns Inc., Jennings Capital Inc., Haywood Securities Inc. and Scotia Capital Inc. (the “Underwriters”) to sell 8,000,000 common shares of the Company (the “Common Shares”) at a price of C$12.50 per Common Share and 666,700 flow-through shares (the “FT Shares”, and together with the Common Shares, the “Underwritten Shares”) of the Company at a price of C$15.00 per FT Share for aggregate gross proceeds of C$110,000,500.
The Company has also granted the Underwriters an over-allotment option to purchase up to that number of additional common shares (the “Over-Allotment Common Shares”, and together with the Common Shares and FT Shares, the “Offered Securities”) equal to 15% of the Underwritten Shares sold pursuant to the Offering, exercisable at any time up to 30 days after and including the closing of the Offering at a price equal to the offering price of the Common Shares of C$12.50 per share.
The Company intends to use the net proceeds from the Offering for upgrades to and expansion of the Silver Yards plant, for payments under the recently announced rail transportation agreements, for exploration and development of the Company’s mineral projects, and for general corporate and working capital purposes.
The Offering is being made pursuant to a short form prospectus filed in each of the provinces of Canada other than Quebec. The Offered Securities are not 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.
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.
About Labrador Iron Mines Holdings Limited (LIM)
LIM’s Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. 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.
LIM contemplates mining in stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure, and for which all operating permits have been issued and plant construction and mine development is nearing completion.
For further information, please view the Company’s website at www.labradorironmines.ca
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 iron ore and steel, 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 reach agreements with any potentially impacted aboriginal groups or to obtain required governmental, environmental or other project approvals. There can be no assurance that the Company will be successful in reaching any agreement with any First Nations groups who may assert aboriginal rights or may have a claim which affects the Company’s properties or may be impacted by the Schefferville Area project. Caution should be exercised on placing undue reliance on forward looking information.
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