TORONTO, Sept. 28, 2012 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF.UN) ("LIORC") is pleased to announce today that at a special meeting of holders of its stapled units held on September 28, 2012, the holders of stapled units overwhelmingly approved the previously announced plan of arrangement under Section 192 of the Canada Business Corporations Act, which provides for the exchange of subordinated note receipts representing subordinated notes for common shares of LIORC. Approximately 99.9% of the votes cast at the meeting were voted in favour of the resolution authorizing the arrangement.
Under the plan of arrangement, each subordinated note receipt will be exchanged for a number of common shares having a fair market value equal to $3.875, which is the principal amount of the subordinated notes underlying each subordinated note receipt. After the exchange, all of the common shares will be consolidated, with the result that each unitholder will end up holding the same number of common shares as the unitholder held before the exchange and LIORC will have 64 million common shares outstanding.
The arrangement remains subject to, among other things, the approval of the Ontario Superior Court of Justice. A hearing for the final order approving the arrangement is scheduled to be held on October 2, 2012.
It is currently expected that the arrangement will be completed with effect on October 3, 2012. After the arrangement becomes effective, the common shares of LIORC will trade under the symbol "LIF".
LIORC is a Canada corporation resulting from the conversion of Labrador Iron Ore Royalty Income 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.
SOURCE: Labrador Iron Ore Royalty Corporation
Bruce C. Bone
President & Chief Executive Officer