ANACONDA MINING INC. ANNOUNCES COMPLETION OF FULLY SUBSCRIBED RIGHTS OFFERING

TORONTO, May 5 /CNW/ - Anaconda Mining Inc. (TSX: ANX) ("Anaconda" or the "Corporation") announces completion of the fully subscribed rights offering to holders of common shares announced on April 4, 2011.  Anaconda issued to holders of its common shares as of record at the close of business on April 7, 2011 transferable rights certificates to subscribe for common shares before 4:00 p.m. (Toronto time) on May 3, 2011 on the terms set out in a rights offering circular dated March 31, 2011 (the "Rights Offering Circular").  The Rights Offering Circular is available on the SEDAR website at www.sedar.com.  One right (a "Right") was issued for each common share outstanding and four (4) Rights will permit the shareholder to purchase one common share (a "Share") for $0.07 per Share.

A total of 31,686,443 Shares were issued pursuant to the exercise of the Rights for total gross proceeds of $2,218,051. The Shares have been approved for listing on the TSX.  Net proceeds after Rights Offering expenses will be released to Anaconda to be used for working capital purposes.

A total of 9,587,164 Shares were issued pursuant to the exercise of the Rights by public shareholders for total gross proceeds of $671,101. The remaining 22,099,279 Shares were issued pursuant to a standby guarantee (the "Standby Guarantee") for gross proceeds of $1,546,950.  The Standby Guarantee was provided by certain investors including members of management.  Of the gross proceeds raised pursuant to the Standby Guaranty, $1,445,909 was applied to the repayment of promissory notes due on June 29, 2011 and June 30, 2011 ("Promissory Notes") previously advanced by the standby guarantors including $302,500 principal amount of Promissory Notes held by insiders.  Pursuant to the Standby Guarantee, the standby guarantors were issued 7,921,611 common share purchase warrants (the "Guarantor Warrants").  Each whole Guarantor Warrant entitles the holder to purchase one common share for $0.08 until May 3, 2013.

ABOUT ANACONDA

Anaconda is a Toronto, Canada based mining and exploration company focused on operating the Pine Cove gold mine located near Baie Verte in Newfoundland, Canada and, with its joint venture partner, Inversiones SBX Limitada, advancing the development and exploration of its iron ore portfolio in Chile.

FORWARD LOOKING STATEMENTS

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 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.

SOURCE Anaconda Mining Inc.

For further information:

FOR ADDITIONAL INFORMATION CONTACT: 

Anaconda Mining Inc.              or
Dustin Angelo
President and CEO 
(647) 260-1248  
Email: dangelo@anacondamining.com     
 
    Terre Partners
    Joanna Longo
    Investor Relations
    (416) 775-8771
    Email: jlongo@terrepartners.com

Company website: www.anacondamining.com

 


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