Anglesey Mining plc’s lack of funds could see the sale of one of its interests to focus more on its flagship Parys Mountain polymetal project on the island.
GOAL
The company has an 11.9% holding in Labrador Iron Mines Holdings Ltd (LIMH), exploring in the central Labrador Trough in the Menihek area of Newfoundland and Labrador, Quebec.
Anglesey today said it was “actively exploring” a sale of its “full” interest in LIMH.
At its iron ore interest in Sweden, the company’s nominated director and Anglesey chief executive officer Rob Marsden has resigned from the board of the joint venture project owner, Grängesberg Iron AB (GIAB).
The partners’ shareholders’ agreement, signed in May 2014 to allow management to appoint the majority board, expired after ten years.
Eurmag AB’s one-year notice to terminate the agreement resulted in Mr Marsden’s departure.
“This decision has been taken as the company believes its management efforts and financial resources are now best focused on the primary long-term goal of the development of the Parys Mountain project in Anglesey,” added the company.
Anglesey retains a 49.8% ownership while Eurmag holds 50.2% in, and management control of, GIAB, which has around US$9 million debt.
Meanwhile at Parys, Anglesey has been “actively identifying and pursuing other options” to generate funds alongside developing the base and precious metal deposit.
In July, the company signed a letter of intent with RheEnergise to explore the possibility of pumped hydro energy storage at Parys through rehabilitating the existing 300 metre deep Morris shaft.
Anglesey might also be able to use RheEnergise’s “innovative High-Density Hydro® energy storage” technology at the mine.
The company’s other measures include issuing equity to settle supplier costs and non-executive directors waiving cash fees owed to them.
“However, the continued progress of the company’s activities remains contingent on its ability to raise further funds and the board continues to explore fundraising options in this regard,” added Anglesey.
Parys contains a copper-zinc-lead-silver-gold volcanogenic deposit with a reported resource of 5.3 million tonnes at over 4.0% combined base metals in the measured and indicated categories.
The site also has 10.8m tonnes at more than 2.5% combined base metals in the inferred category.