|
Anglesey Mining PLC on Friday said it would shift focus to its 100%-owned Parys Mountain project, diverting resources from Grangesberg Iron AB and Labrador Iron Mines Holdings Ltd. Shares in the miner with base metals operations in North Wales, Sweden and Canada slumped 35% to 0.51 pence on Friday. Anglesey said it has been unable to reach a revised loan agreement on $9.0 million in outstanding senior debt held by GIAB, in which its Swedish subsidiary Angmag AB has a 49.8% interest. Under a 10-year shareholder agreement signed in 2014, Angmag held management rights to appoint the majority of GIAB’s board. In May, 50.2% stakeholder Eurmag AB said the agreement had been terminated. ‘Despite the best efforts of the company, revised terms and conditions for the senior debt could not be arrived at such that the board of Anglesey Mining could then explore the raising of funds to facilitate a settlement of this debt,’ Anglesey said. Consequently, its nominated director Rob Marsden will step down. ‘This decision has been taken as the company believes its management efforts and financial resources are now best focused on the primary long-term goal of the development of the Parys Mountain project,’ the company added. Anglesey will retain its interest in GIAB, while management control reverts to Eurmag AB. Meanwhile, Anglesey is exploring the sale of its 11.9% interest in Labrador Iron Mines Holdings Ltd. Labrador subsidiaries Labrador Iron Mines Ltd and Schefferville Mines Inc are engaged in the exploration and development of iron ore projects in the Labrador Trough region and Quebec. In light of its current financial position, Anglesey is ‘actively identifying and pursuing other options’ at Parys to realise value and progress development. This includes a high-density fluid hydro-power energy storage project. In April, the miner published a conceptual study for the storage project, which indicated a positive business case. Then in July, Anglesey signed a letter of intent with high-density hydro storage technology provider RheEnergise Ltd which detailed actions to be taken to progress the project. The ownership, management and financial structure of the project will be agreed once third party funding is identified, Anglesey said. Overall, continued progress of company activities depends upon successful fundraises, which the board continues to explore. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
