Mountain Mine Sale Progresses

July 10, 2008

July 10th (RedOrbit) – ANGLESEY Mining says it is making good progress in moving forward the sale of its Parys Mountain project and in developing an iron mine in Canada.

The London Stock Exchange-listed company announced in April that it was to sell its Parys Mountain project on Anglesey to Australian company Western Metals Ltd (WMT) for about pounds 13.75m in cash and shares.

WMT has said it intends to carry out a major surface drilling programme at the site, extend the underground development and carry out an underground drilling to move the mine towards production.

Anglesey Mining says significant progress has been made over the past three months in drawing up a binding sale and purchase agreement and it expects to set a date shortly for a meeting at which it will seek shareholder approval for the deal.

It also holds a 50% stake in a 90 million ton iron ore mine in Labrador which is being developed and which expects to go into productionin 2009.

BillHooley, AngleseyMining’s chief executive, said the company was encouraged by the progress being made in both its Labrador mining project and in the sale to Western Metals of Parys Mountain.

He said: “We continue to believe that this route offers the best opportunity for the company to realise value from ParysMountain in an acceptable time frame.”

The ParysMountain site contains copper, zinc and lead ores and smaller quantities of gold and silver and previous estimates have suggested that a re-opened mine on the site could create around 100 jobs.

Western Metals, based in Perth, Western Australia and listed on the Australian Stock Exchange, proposes to spendmore than pounds 5m on project development and feasibility studies on the Welsh site. WMT has other exploration projects in Tanzania, Australia and the Americas.

Anglesey Mining said in April that its shareholding in WMT as a result of the sale of the Welsh site would enable it to maintain an indirect minority interest in the future long-term success of Parys Mountain.

The first phase of development of the Schefferville project in Newfoundland and Labrador envisages the initial production of about 500,000 tonnes of iron ore in 2009, building up to 3m tonnes in 2011.


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