May 30, 2011 (Canada NewsWire Group) --
TORONTO, May 30, 2011 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF.UN) ("LIORC") announced today that holders of stapled units of LIORC approved a subdivision of its outstanding stapled units on a two-for-one basis at an annual and special meeting held on May 30, 2011. The subdivision has also been approved by the Board of Directors of LIORC and has been conditionally approved by the Toronto Stock Exchange, subject to the delivery of certain documents. The record date for the subdivision is July 1, 2011.
Following completion of the subdivision, the number of outstanding common shares and subordinated note receipts represented by stapled units will increase from 32 million to 64 million and each stapled unit will thereafter consist of (a) one subordinated note receipt representing a $3.875 face amount of subordinated notes of LIORC and entitled to interest payments of $0.468 per annum, and (b) one common share of LIORC.
Pursuant to the rules of the Toronto Stock Exchange, the stapled units will commence trading on a subdivided basis at the opening of business on June 29, 2011, being the second trading day prior to the subdivision record date. Certificates for the additional stapled units resulting from the subdivision will be mailed to holders of stapled units as soon as possible after the record date. Holders of stapled units should retain their existing stapled unit certificates and not send them to LIORC or its transfer agent.
The Board of Directors expects the subdivision to encourage greater market liquidity and wider distribution of the stapled units among retail investors, as a lower price makes a board lot of stapled units more affordable.
Re-Filing of Q1 Interim Financial Statements
LIORC also announced that it has re-filed its interim financial statements for the three months ended March 31, 2011, to include in those statements a Consolidated Statement of Changes in Equity for the three months ended March 31, 2010 prepared according to the newly adopted International Financial Accounting Standards.
This news release contains forward-looking statements. These statements are based on current expectations, estimates about the markets in which LIORC operates and management's beliefs and assumptions regarding these markets. These statements are subject to risks and uncertainties, as a result of which the statements may prove to be inaccurate. Actual results may differ materially from current expectations and those expressed or implied by LIORC. Factors that could cause such differences include, but are not limited to, iron ore price and volume volatility, exchange rates, dependence upon IOC, dependence on the steel industry, mining risks and insurance, customers, competition, reserves and resources, government regulation and taxation and other factors described under ''Risk Factors'' or discussed in other materials filed by LIORC with applicable securities regulatory authorities from time to time. The reader is cautioned against undue reliance on these forward-looking statements. Except as required by applicable law, the management of LIORC and the Directors undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
LIORC is a Canada corporation resulting from the conversion of Labrador Iron Ore Royalty Income Fund (the "Fund") under an Arrangement effective July 1, 2010. It holds a 15.10% equity interest in Iron Ore Company of Canada ("IOC") directly and through its wholly-owned subsidiary, Hollinger-Hanna Limited, and receives a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC.
Bruce C. Bone
President & Chief Executive Officer