Anaconda acquires 35.7% of New Island shares and extends bid

TORONTO, Aug. 10 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) is pleased to announce that 17,935,274 common shares ("New Island Shares") of New Island Resources Inc. ("New Island") have been validly deposited to Anaconda's previously announced offer to purchase all of the outstanding New Island Shares (the "Offer").

Anaconda has taken up and accepted for payment all shares tendered, which represent approximately 35.7% of the issued and outstanding New Island Shares. Anaconda is now New Island's largest shareholder and beneficially owns 17,935,274 New Island Shares. Payment will be made to New Island shareholders as soon as possible and in any event on or before August 12, 2010 in accordance with the terms of the Offer.

Anaconda has extended its Offer dated June 11, 2010, as amended, and is in the process of filing a Notice of Extension and mailing it to shareholders of New Island. The Offer is for all of the issued and outstanding New Island Shares on the basis of 0.42 of a common share of Anaconda for each New Island Share. The Offer is now open for acceptance until 5:00 p.m. (Toronto time) on Friday, August 20, 2010.

Anaconda understands that various shareholders of New Island were not able to meet requirements imposed by their intermediaries to tender their New Island Shares in advance of the expiry of the Offer and this extension is intended to enable them to accept the Offer. Anaconda encourages each shareholder to check with their intermediary to determine when the Offer must be accepted to meet the new expiry time 5:00 p.m. (Toronto time) on Friday, August 20, 2010.

Anaconda notes that it now holds sufficient New Island Shares to defeat any special resolution of shareholders of New Island to approve a transaction with Mountain Lake Resources Inc. or any other transaction that may be proposed.

As previously announced, Anaconda has requisitioned a meeting of shareholders of New Island for the purpose of electing a new Board of Directors of New Island as soon as possible.

Investors may obtain a free copy of the Offer documents filed by Anaconda with Canadian securities regulators at www.sedar.com. In addition, you may request these documents free of charge, from Anaconda's information agent, Kingsdale Shareholder Services Inc. within North America at 1-888-518-1558 (outside North America at 1-416-867-2272).

    
    Disclaimer
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This press release does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any of the securities of New Island. Such an offer can only be made pursuant to an offer to purchase and accompanying an offering circular filed with the securities regulatory authorities in Canada.

    
    About Anaconda
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Anaconda is a Toronto, Canada-based mining development and exploration company focused on advancing its principal assets, the Pine Cove Gold Mine in Canada and its portfolio of Chilean iron ore assets. Anaconda is committed to bringing the Pine Cove Gold Mine into full Commercial Production, as well as advancing the exploration and near-term production opportunities of its Chilean iron ore assets. Anaconda continues to evaluate strategies to 'unlock' value attributable to its Chilean iron portfolio for the benefit of its shareholders.

FORWARD-LOOKING INFORMATION

This news release contains certain "forward-looking information" under applicable Canadian securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information. Forward-looking information is often characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include Anaconda's ability to acquire 100% of the New Island common shares and the benefits that may be obtained as a result of the business combination of the two companies. Many of these assumptions are based on factors and events that are not within the control of Anaconda and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, the business of New Island and Anaconda not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in the Annual Information Form for Anaconda filed with securities regulatory authorities and available at www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Anaconda undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

For a copy of the early warning report, please contact Greg DiTomaso at (647) 436-2592.

%SEDAR: 00007625E

SOURCE Anaconda Mining Inc.

For further information: For further information: Anaconda Mining Inc., Lew Lawrick, President and CEO, (416) 864-3357, Email: llawrick@anacondamining.com; or Anaconda Mining Inc., Greg DiTomaso, Investor Relations, (647) 436-2592, Email: info@anacondamining.com; Or visit Anaconda's website: www.anacondamining.com


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