Anglesey Mining's associate, Labrador Iron Mines Holdings (LIM), has entered into a new iron ore sales agreement with the Iron Ore Company of Canada (IOC) for the sale of all of LIM's iron ore production in 2013 and 2014.

At the same time, LIM has announced that it has entered into an off-take financing agreement with RB Metalloyd (RBM), a leading international commodity trading house, under which LIM will receive an advance payment of $35m to be credited against future sales of a minimum of 3.5m tonnes of iron ore during 2013 and 2014.

"We are very pleased to be able to continue our working relationship with IOC as we head into our third year of production from our Schefferville area iron ore mines" said John Kearney, LIM's Chairman and Chief Executive Officer.

"In addition, extending the contract for the next two years and fixing the price to be calculated based on the monthly average of the market index are two important improvements over previous years."

At 11:42am: (LON:AYM) Anglesey Mining share price was +0.63p at 7.63p