Welsh Mine Ready for Sale
By DAVID JONES
ANGLESEY Mining is reporting a profit of more than pounds 10m for the year ended March 31, 2008, as work continues to sell a project in North Wales and to bring an iron ore mine into production in North America.
The AIM-listed mining company has a 50% ownership interest in a Canadian company holding the Labrador iron ore properties.
It is also negotiating the sale of its ParysMountain project on Anglesey to Western Metals, of Perth, Western Australia, for about pounds 14.2m in cash and shares.
Chairman John Kearney said the highlight of the company’s year was the flotation of Labrador Iron Mines Holdings Ltd on the Toronto Stock Exchange last December.
The flotation has raised sufficient funds to bring the iron ore project into production from next year and has significantly strengthened the company’s balance sheet, he said.
Anglesey Mining said almost all of this year’s profit of pounds 10.2m had come about as a result of the successful flotation of the Labrador Iron project. The profit figure was up from pounds 6.8m the previous year.
The Parys Mountain property, the largest known base metal deposit in the UK, contains zinc, copper and lead with smaller amounts of silver and gold. Re-opening of a mine on the site could create up to 100 jobs, the company has previously estimated.
Mr Kearney said: “For some time the company has been seeking the finance to develop the Parys Mountain mine in a manner that would not be overly dilutive to Anglesey shareholders.
“We believe that the prospective transaction with Western Metals represents a good opportunity for the company to realise value from the Parys Mountain mine in the near term.”
The company said continuing demand for primary metals from developing countries such as China and India should help to sustain metal prices.
Provided the sale of the Parys project to Western Metals goes ahead as planned, the group’s primary exposure will be to the price of iron ore.
david.r.jones@dailypost.co.uk
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