IRON ORE: Labrador Iron raises $29M for operations

LABRADOR – Toronto-based Labrador Iron Mines Holdings (LIM) has raise a total of $29.98 million with which to fund the seasonal resumption of work at its Schefferville iron ore mine near the town of the same name. The net proceeds will be used for pre-stripping, mining and processing costs, including payments to mining contractors and for transportation.

LIM issued a total of 27.6 million units that sold at a price of $1.05 per unit. Each unit consists of one common share of the company and one-half of one common share purchase warrant.  Each warrant will entitle the holder to purchase one common share of the company at an exercise price of $1.35 per common share for a period of 36 months following the date of closing of the offering.

Work at the mine is to resume in April 2013. Up to 2.0 million tonnes of ore from several deposits are treated annually at the Silver Yards plant to produce lump, sinter and ultra-fine products. A flow sheet of the plant is available at LabradorIronMines.ca/project_mining.php.