Anglesey increases stake in Swedish iron ore mine

Highlights

• Anglesey Mining plc has agreed with Roslagen Resources AB (Roslagen) to purchase Roslagen’s 29.8% stake in GIAB, taking Anglesey’s ownership level to 49.75%, and the assignment to Anglesey of 40% of outstanding subordinated debt owed to Roslagen by GIAB with a nominal value of £335 000, for a total consideration of £525 000, to be satisfied as follows:
  • A cash payment on completion of SEK 1 090 000 (approximately £87 000), funded from the company’s existing resources.
  • The issue to Roslagen of 14 544 827 new ordinary shares of Anglesey Mining at a price of 3.0 pence per share, to be held in escrow for twelve months from the date of issue. A further announcement will be made upon the issue of the consideration shares.
• At the closing of the transaction, Roslagen will hold 4.9% of the expanded capital of Anglesey and will also continue to hold approximately SEK 6 280 000 (£500 000) in subordinated debt due from GIAB.
• Anglesey has a Right of First Refusal on the remaining 50.25% of GIAB.
• Andreas Simoncic, a director and shareholder of Roslagen will remain on the Board of GIAB.
• The updated PFS for Grängesberg, completed in July 2022, highlighted the robust economics of the asset with a post-tax NPV8 of US$688 million, at an iron ore price of US$120/t, 62% Fe, CFR China benchmark, and FOB costs of US$53/t to the ice-free port of Oxelösund, Sweden.
• Previously, revenue was also generated from the sale of apatite concentrates (17 – 19% P) produced from the tailings stream. While the PFS indicates potential apatite production of 210 000 tpy, no sales have yet been included in the financial evaluation. This product also contains elevated rare earth content.
• The Swedish Mining Inspectorate granted Grängesberg Iron AB a 25-year mining concession for the iron ore mine in 2013.

Jo Battershill, Chief Executive of Anglesey Mining, commented:

“We are very excited to agree this transaction with Roslagen, increasing Anglesey’s holding in Grängesberg. We are also very pleased to retain the services of Andreas Simoncic on the Board of GIAB and welcome Roslagen’s ongoing involvement as an Anglesey shareholder. Andreas’ long history with the project will be an important component in moving Grängesberg forward.”

“We continue to believe the Grängesberg project has the potential to be restarted as one of Europe’s largest individual producers of iron ore concentrates. When combined with the high-grade nature of the concentrate and proximity to European steel mills, the asset clearly demonstrates highly strategic positioning.”

“As we have previously communicated, the opportunity for Anglesey Mining is now to advance the project through to a financial investment decision. This could be completed along with securing a strategic investor, offtake partner, separate listing, or a combination of these options. However, we recognise that there is still a lot of work to complete at Grängesberg, including updating both the resource and reserve models and undertaking environmental assessment studies as preliminary steps to preparing a feasibility study.”

Read the article online at: https://www.globalminingreview.com/mining/16012023/anglesey-increases-stake-in-swedish-iron-ore-mine/