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Attention Business Editors
Labrador Iron Ore Royalty Income Fund announces filing of articles of arrangement
TORONTO, June 30 /CNW/ - Labrador Iron Ore Royalty Income Fund (LIF.UN)
is pleased to announce that Articles of Arrangement and other documents were
filed today with the Director under the Canada Business Corporations Act and a
Certificate of Arrangement was issued in connection with the conversion of the
Fund into a corporation named "Labrador Iron Ore Royalty Corporation".
All of the required transaction documentation has been executed and
delivered. The Fund will distribute $248 million of subordinated notes to
unitholders and unitholders will be able to exchange their units for shares of
Labrador Iron Ore Royalty Corporation. From July 1, 2010, the common shares of
Labrador Iron Ore Royalty Corporation and the subordinated notes will 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 Fund has been unable to obtain an advance tax ruling from the Canada
Revenue Agency but has received an opinion from its counsel confirming the
material tax consequences of the Arrangement.
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/For further information: Bruce C. Bone, Chairman & Chief Executive
Officer, (416) 863-7133/
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