Anglesey Mining plc (LON:AYM) soared after the restructuring of Labrador Iron Mines Holdings Limited (LIMH), in which it has a large stake, was approved.
LIMH's (TSE:LIM) restructuring has been approved by the Ontario authorities and should go through next Monday.
Creditors of Labrador will be issued around 22% of the share capital of Labrador, and also 49% of the shares of its operating subsidiary.
Anglesey's stake will be diluted down from 15% to about 11.9%, leaving it as the second largest shareholder.
“We are very pleased to see LIMH passing this major milestone which will leave it debt free and with all its major assets intact,” said Bill Hooley, chief executive of Anglesey.
“As a significant shareholder in LIMH we look forward to the future development of its iron ore assets in Labrador when the economic climate is right, and to other opportunities that LIMH is now in a position to pursue,” he added.
Meanwhile Anglesey, which is the owner of the Parys Mountain underground zinc-copper-lead-silver-gold deposit in Wales, revealed it has now completed its previously announced share placing, from which it raised a total of £310,200.
Shares in Anglesey were up 19% towards the end of trading in London on Friday.