MONTREAL, QUEBEC--(Marketwired - Feb. 24, 2016) -
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWSWIRE SERVICES
The Board of directors of Lamêlée Iron Ore Ltd. ("Lamêlée" or the "Company") (TSX VENTURE:LIR) has completed its strategic review in light of prevailing conditions in the seaborne iron ore and capital markets. It is seeking shareholder approval for the implementation of the conclusions of the review at the next shareholders' meeting scheduled to be held on March 22, 2016.
The surge in iron ore supply from Australia and Brazil and slowing demand in China caused seaborne iron prices to plummet in 2015. Forecasts for 2016 project a continued erosion of iron ore prices. Financial markets react to this situation by significantly curtailing the availability of funds for the development of new mines. Reviewing the situation, the actions of the major iron miners to defend market share and industry forecasts with respect to the evolution of global steel and iron ore markets, the Board concluded that it is most likely that iron ore prices will remain depressed and access to capital markets closed for a period longer than Lamêlée can withstand.
Given these circumstances, the Board concluded that the course of action which is described below is the one that offers existing shareholders the best chances to save and better their investment. In a nutshell, the objective is to maximize the value of Lamêlée's listing by performing a merger, amalgamation or business combination with a private mining exploration or junior mining company seeking to acquire a TSX Venture listed corporation.
To facilitate the achievement of this objective, the following course of action needs to be completed:
Should the Board not succeed in completing on acceptable terms the restructuring transaction mentioned above, it would then be necessary to effect a voluntary dissolution and delist from the TSX Venture Exchange.
About Lamêlée Iron Ore Ltd
The Company is a new iron ore mineral exploration company focused on the development of an iron mine project located in the southern segment of the Labrador Trough near the border with Newfoundland and Labrador, approximately 50 km south of the city of Fermont (Quebec). The project consists of 29 mineral claims covering 1,524 hectares or 15 km2. The common shares are listed on the TSX-V under the symbol "LIR". In December 2013, the Company acquired 100% of Fancamp Exploration's Lac Lamêlée South Iron Project located in the Fermont Mining District of northeastern Quebec, subject to a 1.5% Net Smelter Return royalty in favour of the Sheridan Platinum Group Ltd., of which 0.5% is subject to a buy-back option by the Company for $1.5 million. The Company also granted an additional 1.5% Net Smelter Return royalty in favor of Fancamp Exploration on the Lac Lamêlée South Iron Project, of which 0.5% is subject to a buy-back option by the Company for $1.5 million.
Information set forth in this news release may contain forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are no guarantees of future performance. Lamêlée cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Lamêlée's control. Except as required under applicable securities legislation, Lamêlée undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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