TORONTO, ONTARIO--(Marketwired - Dec. 23, 2016) -
(Not for dissemination in the United States of America)
Mining Development LLC (the "Acquiror") issues this press release pursuant to Part 3 of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues with respect to Labrador Iron Mines Holdings Limited (the "Corporation"), 55 University Avenue, Suite 1805, Toronto, Ontario M5J 2H7. A copy of the Acquiror's related early warning report has been filed with the applicable securities commissions and further information may be obtained by contacting Mary Ann Santangelo at 203-609-8323.
On December 20, 2016, the Acquiror acquired 32,456,648 common shares of the Corporation (the "Common Shares") pursuant to the plan of compromise and arrangement dated December 6, 2016 in respect of the Corporation and its two subsidiaries, Labrador Iron Mines Limited and Schefferville Mines Inc., (the "Plan") pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The Plan was sanctioned by the Ontario Superior Court of Justice on December 14, 2016 and became effective on December 20, 2016.
The aggregate 32,456,648 Common Shares, among other consideration, were issued pursuant to the Plan in consideration for the extinguishment of debt owing to the Acquiror by the Corporation and its subsidiaries in the amount of approximately $42,047,065.
After giving effect to the Plan, the Acquiror directly owns an aggregate of 32,456,648 Common Shares representing approximately 19.99% of the issued and outstanding Common Shares.