TORONTO, Dec. 21, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to announce that the Company entered into an agreement (the "Agreement") on December 18, 2015 with Auramet International LLC ("Auramet") through which Auramet has paid USD$500,000 (USD$980 per ounce) (the "Prepayment Amount"), less fees, to Anaconda in exchange for 510 ounces of gold. Anaconda will deliver these ounces to Auramet in 10 deliveries of 51 ounces per month from January to October 2016. The Prepayment Amount was priced based on a spot price on December 18, 2015 of USD$1,067 per ounce. Anaconda also agrees to sell 100% of its production to Auramet for a minimum of one year from the last contractual delivery date (October 2016).
President and CEO, Dustin Angelo, stated, "The Company is very adept at managing its finances and has operated strictly from cash flow for over four years, internally funding capital projects and growing from just the Pine Cove mine to the much larger Point Rousse Project. We believe the Auramet transaction is a favorable financing that will help accelerate our pace of exploration and development. The immediate cash infusion will allow Anaconda to reach the desired work pace and take another significant step towards our goal of adding ten years of production to the project."
The Prepayment Amount will be used to advance exploration on several areas of the Point Rousse Project with emphasis on adding resources to the Stog'er Tight deposit and surrounding area, building upon a recent resource estimate (See Press Release of October 22, 2015) and promising results from a trenching and channel sampling program (See Press Release of December 17, 2015).
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing project, called the Point Rousse Project, and approximately 6,346 hectares of exploration 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 almost ten-fold. It is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include four deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove mill. The Company's plan is to discover and develop more resources within the project area and double annual production from its current rate of approximately 15,000 ounces to 30,000 ounces.
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 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: Anaconda Mining Inc.: Dustin Angelo, President and CEO, (647) 260-1248, email@example.com, www.AnacondaMining.com; Kingston Advisors: Investor Relations, (212) 796-5290, firstname.lastname@example.org, www.KingstonAdvisors.com