TORONTO, ONTARIO – January 11, 2017 – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) is pleased to announce that the Company entered into an agreement (the “Prepayment Arrangement”) on January 9, 2017, with Auramet International LLC (“Auramet”) through which Auramet has paid USD$551,304, less fees, to Anaconda in exchange for 468 ounces of gold (USD$1,178 per ounce). After fees and conversion to Canadian dollars, the Company received a net amount of $660,990 (the “Net Proceeds”). Anaconda will deliver these ounces to Auramet in 12 semi-monthly deliveries of 39 ounces each from January to June 2017. The Net Proceeds will be used for general working capital purposes. All dollar amounts are in Canadian dollars unless otherwise noted.
President and CEO, Dustin Angelo, stated, “We are pleased to be able to enter into this short-term financing with Auramet, who has been a great partner to Anaconda for many years. The Prepayment Arrangement will allow us to fortify our cash position for the next few months. Operating cash flow has been tight this fiscal year because of the slow start in the first quarter. Operationally, we were much improved in the second quarter and forecast our expenses to continue to decrease in the second half of the year. The Prepayment Arrangement affords us greater flexibility and cushion as we come out of the difficult period earlier in the year.”
As part of the Agreement, Anaconda granted to Auramet European-style call options to purchase from the Company gold bullion as follows:
|Ounces||Strike Price||Expiration Date|
|400||USD$1,300||December 27, 2017|
|400||USD$1,300||August 29, 2018|
ABOUT ANACONDA MINING
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and three exploration/development projects called the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of property on the Ming’s Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove Mill. A second project called the Tilt Cove Property, consisting of 350 hectares, is located approximately 60 kilometres by road from the Pine Cove Mill but is also within the Baie Verte Mining District and underlain by similar geology to the Point Rousse Project.
Anaconda also controls the Viking and Great Northern Projects, which have approximately 6,225 and 6,375 hectares of property, respectively, in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The Viking Project contains the Thor Deposit and other gold prospects and showings and the Great Northern Project includes numerous prospects and showings within a similar geological setting as the Viking Project. The Company’s plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of nearly 16,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “may,” “estimates,” “expects,” “indicates,” “targeting,” “potential” and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
FOR ADDITIONAL INFORMATION CONTACT:
Anaconda Mining Inc.
President and CEO
High Stakes Strategy & Communications