- Labrador Iron Mines Holdings Ltd. (LBRMF) has signed an amalgamation agreement with its majority owned subsidiary, Labrador Iron Mines Ltd. (LIM)
- Under the agreement, the company will acquire all of the shares of LIM that it does not currently own, in exchange for new shares in the company, subject to shareholder approval by the of LIM
- The company currently holds approximately 52 per cent of LIM
- Labrador Iron Mines Holdings Ltd. opened trading at C$0.09 per share
Labrador Iron Mines Holdings Ltd. (LBRMF) has signed an amalgamation agreement with its majority owned subsidiary, Labrador Iron Mines Ltd. (LIM).
Under the agreement, the company will acquire all of the shares of LIM that it does not currently own, in exchange for new shares in the company, subject to shareholder approval by the of LIM. The company currently holds approximately 52 per cent of LIM.
The transaction will be a statutory amalgamation of Labrador Iron Mines Ltd. with 5035020 Ontario Ltd., a wholly owned subsidiary corporation of the company.
The number of Labrador Mines Holdings shares to be issued in exchange for the Labrador Iron Mines shares is calculated to equate to the relative percentage interest of each company in the underlying assets.
“LIM Management believes that combining the shareholdings of LIMH and LIM, into a single publicly traded company, will simplify the corporate structure, improve liquidity and market capitalization, enhance financing flexibility for the development and construction of the Houston Project, and create the best prospects for long-term value for shareholders,” said John F. Kearney, Chairman and CEO of Labrador Iron Mines. “It is now proposed to simplify the group corporate structure by combining LIMH with LIM in a three-way, statutory amalgamation whereby LIM shareholders would receive new shares of LIMH and LIMH would hold 100 per cent of LIM. In summary, the proposal is to put the group structure back the way it was prior to the CCAA reorganization in 2015.”
The Amalgamation is expected to close shortly after a special meeting of shareholders for March 30, 2023., subject to approval by Labrador Iron Mines shareholders and other customary closing conditions.
Labrador Iron Mines Holdings Limited is a mineral resource company. Through its majority owned subsidiaries LIM and Schefferville Mines Inc. (SMI), the company owns extensive iron ore resources in the central part of the Labrador Trough region, one of the major iron ore producing regions in the world, centered near the town of Schefferville, Québec.
Labrador Iron Mines Holdings Ltd. opened trading at C$0.09 per share.