TORONTO, June 4, 2012 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the
Company") - (TSX: ANX) announced that, on May 30, 2012, it received a
payment of US$2 million from Hierro Tal Tal S.A. ("Tal Tal"), the
second and final guaranteed payment from the sale of the Company's 50%
ownership stake in Minera Hierro San Gabriel S.A. ("MHSG") and its 20%
ownership stake in Inversiones Hierro Antofagasta S.A. ("IHA"), which
closed December 7, 2011. The Company, through its wholly owned
subsidiary Inversiones La Veta SpA ("La Veta"), has the right to
receive an additional US$3 million upon achievement of commercial
production, as defined by the stock purchase agreement (the "SPA"), by
any of the properties, directly or indirectly, controlled by MHSG or
IHA (the "Properties"). La Veta can earn up to another US$4 million
based on the sales price realized on certain volumes of production from
the Properties, as defined in the SPA. Furthermore, La Veta shall earn
a gross sales royalty for all production sold from the Properties.
With the proceeds from the transaction with Tal Tal and operating cash
flow, the Company made another principal payment against the
outstanding Convertible Loan, Series I Debentures and Series II
Debentures (collectively, the "Loans"). The principal payments totaled
$2,300,000 and were divided pro rata across the Loans. Since March 28,
2012, the Company has made approximately $3,300,000 in principal
payments against the Loans and reduced the outstanding balance from
$6,900,000 to $3,599,280.
President and CEO, Dustin Angelo, stated, "Receipt of this payment
illustrates Anaconda's ability to create value in a challenging market.
We have now achieved our goal to reduce our interest bearing debt
nearly in half by the end of fiscal 2012. We are especially pleased
that Pine Cove was a major source of cash for the principal repayment,
providing approximately $1.3 million in just the last five months.
Operations at Pine Cove are running well so we will focus more effort
on defining the exploration potential around our mine, which offers the
promise of more resources and production growth."
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold
mining and exploration company with a producing asset located on the
Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
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 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
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:
Anaconda Mining Inc.
President and CEO
ProConsul Capital Ltd.
Company website: www.anacondamining.com