- Labrador Iron Mines Holdings Limited (LBRMF) has announced a US$4,000,000 investment by Scully Royalty Ltd.
- The investment consists of a US$3,000,000 equity component and a US$1,000,000 convertible credit facility
- LIM will use the proceeds as working capital to advance the Houston Project
- Scully Royalty Ltd. is an international merchant bank that provides financial services for corporations and institutions
- Labrador Iron Mines Holdings Limited is a mineral resource company
- Labrador Iron Mines Holdings Ltd opened trading at C$0.08 per share
Labrador Iron Mines Holdings Limited (LBRMF) has announced a US$4,000,000 investment by Scully Royalty Limited.
The investment includes a US$3,000,000 equity component and a US$1,000,000 convertible credit facility.
In line with this, Scully will subscribe for 13,043,478 common shares of the company at a price of $0.23 per share, for gross proceeds of $3,000,000, thereby becoming a strategic shareholder with about 7.4 per cent of the company’s shares at the end of the transaction.
In addition, through a subsidiary, Scully will provide an unsecured, convertible, $1,000,000 credit line to the company, with a five-year term, at an interest rate of 6.8 per cent, and convertible at $0.31 per share, among other standard terms and conditions.
Furthermore, Labrador Iron Mines Limited, the operating subsidiary of the company, will establish Labrador Iron Mines Limited Partnership (LIMLP), which will hold and develop the Houston Project.
In connection with the strategic investment, Scully will be granted certain rights, including the nomination of one director to the board of the company.
“Scully’s strategic investment and partnership represents a significant milestone for LIM and a strong endorsement of the company, and leveraging Scully’s extensive iron ore mining experience and relationships in the Labrador Trough will be invaluable to our advancement of Houston,” said John F. Kearney, Chairman and CEO of Labrador Iron Mines.
“We’re thrilled to partner with the team at Labrador Iron Mines and believe that this investment will enable significant progress towards bringing the Houston Project to production,” stated Samuel Morrow, Scully’s Chief Executive Officer.
The company will use the proceeds of the strategic investment as working capital to advance the Houston Project.
Effective on closing of the investment, Samuel Morrow, President and Chief Executive Officer of Scully, will be appointed to the company’s Board of Directors. Morrow has been CFO of Scully since 2017 and was appointed President and CEO in 2021.
Scully Royalty Ltd. is an international merchant bank that provides financial services for corporations and institutions.
Labrador Iron Mines Holdings Limited is a mineral resource company.
Labrador Iron Mines Holdings Ltd opened trading at C$0.08 per share.
