TORONTO AND ST. JOHN'S, Jan. 11 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) and New Island Resources Inc. ("New Island") (TSXV: NIS) are pleased to announce that New Island shareholders (the
"Shareholders") have voted in favour of the previously announced plan of arrangement
between Anaconda and New Island pursuant to which Anaconda will acquire
New Island's interest in the Pine Cove Mine and Mill (the "Arrangement") at a special meeting of Shareholders held today in St. John's,
Newfoundland and Labrador. The resolution approving the Arrangement was
approved by two-thirds of the votes cast by the Shareholders voting in
person or by proxy at the meeting as well as a majority of the minority
Shareholders of New Island.
The Arrangement remains subject to applicable regulatory approval as
well as a final hearing by the Court of Queen's Bench in the Province
of Alberta, currently expected to take place on January 13, 2011, with
closing of the Arrangement expected to occur shortly thereafter.
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.
ABOUT NEW ISLAND
New Island is a diversified junior exploration company holding gold and
base metal properties in the Province of Newfoundland and Labrador. New
Island has entered into an agreement for the sale of its interest in
the gold mine and mill project at Pine Cove in central Newfoundland.
Additional Information concerning this sale and New Island may be
obtained on New Island's website at: www.newislandresources.com or from the System for Electronic Document Analysis and Retrieval
(SEDAR) website at: www.sedar.com under New Island's profile.
This news release contains "forward-looking information" within the
meaning of applicable Canadian securities laws. Forward-looking
information includes, but is not limited to, information concerning the
proposed plan of arrangement between Anaconda and New Island and
matters relating thereto. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not
anticipate", or "believes" or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates of
management at the date the information is made, and is 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, without limitation, that
all required third party regulatory and governmental approvals to the
transaction will be obtained and that the required court approval of
the transaction will be obtained and all other conditions to completion
of the transaction will be satisfied or waived. Many of these
assumptions are based on factors and events that are not within the
control of Anaconda or New Island 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, fluctuating metal prices, 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 as well as those risk factors discussed in Anaconda's
Annual Information Form for the year ended May 31, 2010 and New
Island's Management Information Circular dated December 15, 2010,
available at www.sedar.com. Although Anaconda and New Island have 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 information Anaconda and New Island undertake 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.
This news release and the information contained herein does not
constitute an offer of securities for sale in the United States and
securities may not be offered or sold in the United States absent
registration or exemption from registration.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Anaconda Mining Inc.
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