TORONTO, Oct. 2, 2012 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF.UN) ("LIORC") is pleased to announce today that it has received a final order from the Ontario Superior Court of Justice on October 2, 2012 approving the previously announced plan of arrangement under Section 192 of the Canada Business Corporations Act. LIORC also announced that it has filed articles of arrangement to give effect to the plan of 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.
LIORC expects the certificate of arrangement to be issued with an effective date of October 3, 2012 at which time the arrangement will become effective. After the arrangement becomes effective, the common shares of LIORC will trade on the Toronto Stock Exchange 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