Anglesey Mining PLC (AIM: AYM) soared on Friday, jumping 233.33% after unveiling a comprehensive package of measures to reinforce its balance sheet — including a major debt settlement, asset disposals, fresh investment from Energold Minerals and new board appointments.
The company confirmed it has signed a binding letter of intent with Energold to restructure its finances and support future development at the fully owned Parys Mountain project.
Anglesey will extinguish roughly £4 million of debt by transferring its interests in Grängesberg Iron AB and Labrador Iron Mines Holdings. Energold will also inject £350,000 via the purchase of non-voting exchangeable warrants.
Highlights
- Anglesey to eliminate approximately £4 million of debt in exchange for its interest in Grängesberg Iron AB (“GIAB”) and holding of Labrador Iron Mines Holdings Limited (“LIMH”), reducing total outstanding debt to approximately £100,000
- Energold to provide immediate funding to Anglesey of £350,000 through Warrant Offering
- Veteran mining executives, Brendan Cahill and Jim Williams, to join Anglesey’s board
- Anglesey to focus wholly on advancing Parys Mountain going forward
“This series of measures places Anglesey on a much firmer financial footing from which to progress our 100% owned Parys Mountain and deliver long-term value for our shareholders,” said chair Andrew King.
Following the restructuring, only about £100,000 of debt will remain, linked to a property at Parys Mountain. The company added that Energold’s warrant investment will be priced on a five-day VWAP basis, and an extraordinary general meeting will be called to approve a share consolidation needed for the issuance of the warrants.
Energold executives Brendan Cahill and Jim Williams will join the board once the warrant process is completed. Regulatory approval in Sweden for the transfer of Angmag is still pending, with completion expected in due course.
Andrew King, Chairman of Anglesey, commented: “We are pleased to announce this series of measures today that we believe place Anglesey on a much firmer financial footing from which to progress our 100% owned Parys Mountain and deliver long term value for our shareholders. Our confidence in the future of Anglesey is shared by our largest shareholder, Energold, and we appreciate the support they have provided to the Company as a strategic investor and now through this Debt Settlement Agreement and their new investment through the Warrant Offering.
On behalf of the Board, I also welcome Brendan Cahill and Jim Williams as directors of the Company. We look forward to working with them and leveraging their extensive experience and knowledge of the mining sector.”
Anglesey shares were last up more than 233.00% at 1.00p in London.
