Labrador Iron Mines Holdings Limited (TSX:LIM) announced that in connection with its previously announced
public offering on April 4, 2011, it has entered into an agreement with a syndicate of underwriters to sell 8 million common shares of the company at C$12.50 per common share and 666,700 flow-through shares at C$15.00 per 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 and together with the common shares and flow-through shares 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 C$12.50 per share.
LMI 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
LIM’s Schefferville Area project involves the development of 20 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.