TORONTO, Aug. 11 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) confirms that it has taken up and paid for the previously announced 17,935,274 common shares ("New Island Shares") of New Island Resource Inc. ("New Island") that had been deposited to Anaconda's offer to acquire the issued and outstanding New Island Shares (the "Offer"). Accordingly, no further rights of withdrawal exist with respect to these shares.
In a press release it issued August 11, 2010, New Island stated that it intends to continue pursuing a competing proposed plan of arrangement with Mountain Lake Resources Inc. that it cannot in fact complete. As New Island noted in its press release, the proposed transaction remains subject to the approval by at least two-thirds of the votes of New Island shareholders voting at a meeting called to approve this transaction.
New Island's stated intention to pursue this transaction only serves to mislead New Island shareholders given that New Island also acknowledged that Anaconda has advised New Island that it will not be voting in favour of this transaction. With Anaconda holding approximately 35.7% of the outstanding New Island Shares, New Island cannot possibly under any circumstances obtain the required shareholder approval in order to proceed with the Mountain Lake transaction.
As previously announced, Anaconda extended the expiry date of its Offer until 5:00 p.m. (Toronto time) on August 20, 2010 when it came to Anaconda's attention 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 previous 5 p.m. August 9 expiry deadline. This extension is intended to enable them to accept the Offer.
Anaconda is pleased to report that today significant additional New Island Shares have been tendered to the Offer and Anaconda encourages all other holders of New Island Shares to participate in the only offer for New Island Shares that can be completed at this time. Anaconda cautions shareholders to check with their intermediary to determine when the Offer must be accepted to meet the new expiry time of 5 p.m. (Toronto time) on Aug. 20, 2010.
Anaconda reiterates 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 also 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).
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.
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.
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.
SOURCE Anaconda Mining Inc.
For further information: For further information: Lew Lawrick, President and CEO, Anaconda Mining Inc., (647) 478-5307, Email: firstname.lastname@example.org; or Greg DiTomaso, Investor Relations, Anaconda Mining Inc., (647) 436-2592, Email: email@example.com; Or visit Anaconda's website at: www.anacondamining.com