LABRADOR – Labrador Iron Mines Holding (LIM) of Toronto has completed a $35 million bought deal financing with which to advance its Schefferville iron ore project along the Labrador-Quebec border. The company issued common shares at $5.55 each totalling approximately $30 million and flow-through shares at $6.65 each for a total of $5 million.
LIM received government environmental approval and project release for a direct shipping ore (DSO) operation in February 2010. The company plans to begin production from the James and Redmond deposits this summer. Metallurgical tests have been positive, and the company has significantly increased resources over historical levels. The James , Redmond 2B and Redmond 5 deposits (to be mined during Stage One) contain 11 million tonnes of indicated resources at a grade of 57.4% Fe. The ore will be railed to the port of Sept-Iles, QC.
More information about the Schefferville area project is available at www.LabradorIronMines.ca.