May 19, 2010 (Canada NewsWire Group) -- Labrador Iron Ore Royalty Income Fund (LIF.UN.) is pleased to announce that at the annual and special meeting of unitholders held on May 19, 2010, the unitholders overwhelmingly approved the previously announced plan of arrangement under section 192 of the Canada Business Corporations Act pursuant to which the Fund will be converted into a corporation to be named "Labrador Iron Ore Royalty Corporation". Approximately 99.9% of the votes cast at the meeting were voted in favour of the extraordinary resolution authorizing the arrangement.
Under the plan of arrangement, the Fund will distribute $248 million of subordinated notes to the unitholders and then complete a series of steps that will effectively result in unitholders exchanging their units for shares of Labrador Iron Ore Royalty Corporation. The common shares of Labrador Iron Ore Royalty Corporation and the subordinated notes held by the unitholders will then trade together as stapled units on the Toronto Stock Exchange. The unitholders will continue to receive a quarterly distribution on the 25th day of the month following the end of each quarter.
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 May 25, 2010.
It is expected that the transactions will be completed with effect on the first day of a calendar quarter in 2010.