March 14, 2017 – Toronto, ON – Anaconda Mining Inc. (“Anaconda”) (TSX:ANX) is pleased to announce that it is hosting a conference call on Thursday, March 16, 2017 at 2:00 pm ET for investors and interested parties to discuss the acquisition of Orex Exploration Inc. (“Orex”), which owns the Goldboro Project in Nova Scotia. The purpose of the call is to review the transaction, explain the business combination rationale, discuss near-term milestones and answer any questions about the acquisition.
The transaction is intended to provide significant benefits for securityholders of both companies, including:
• Acceleration of development of Orex’s Goldboro Project by combining Orex’s mineral resources with Anaconda’s proven operating infrastructure at the Point Rousse Project and experienced management team;
• Potential for substantial capital cost reductions at the Goldboro Project through leveraging Anaconda’s existing port, mill and tailings facilities;
• Potential for gold producing operations in two mining friendly jurisdictions in Atlantic Canada – Newfoundland & Labrador and Nova Scotia;
• Establishment of a strong position from which to participate in any future consolidation in the mining industry in Atlantic Canada; and
• Greater market presence, enhanced liquidity and a broader capital markets profile.
The call-in information is as follows:
Local access: 416-764-8632
Toll free: 1-888-390-0598
Guest Code: 6087960
ABOUT ANACONDA MINING INC.
Anaconda 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. Anaconda’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.
Paul McNeill, Anaconda’s VP of Exploration and a qualified person pursuant to NI 43-101, has reviewed and approved the scientific and technical data of Anaconda contained in this press release.
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, the business combination, statements regarding the combined company, 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 approval of the arrangement by the Toronto Stock Exchange and the TSX Venture Exchange; the approval of the arrangement by the Ontario Superior Court of Justice; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any projects 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; the realization of the expected benefits resulting from the combination of the two entities (or the strategies or future actions of the companies); 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,” “intends,” “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.
None of the securities to be issued pursuant to the arrangement have been or will be registered under the United State Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and any securities issued in the arrangement are anticipated to be issued in reliance upon available exemptions from such registration requirements pursuant to Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
FOR ADDITIONAL INFORMATION CONTACT:
Anaconda Mining Inc.
President and CEO