Anaconda Mining announces $2 million brokered flow-through private placement
15 Jun, 2016, 16:33 ET
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TORONTO, June 15, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) is pleased to announce that it has appointed Red Cloud Klondike Strike Inc. (the "Agent") to sell by way of private placement up to 28,571,429 flow-through units of the Company (the "Units") on a best-efforts basis. The Units are at a price of $0.07 per Unit to raise aggregate gross proceeds of up to $2,000,000 (the "Offering"). The Company has also granted the Agent an option, exercisable in whole or in part any time up to 48 hours before the closing of the Offering, to arrange for purchasers of additional units of the Company having the same composition, terms and price as the Units to raise additional gross proceeds of up to $300,000 (the "Option").
"The Company plans to use the proceeds raised to accelerate its exploration program near the 1,200-tonne-per-day Pine Cove mill where it has successfully identified several higher-grade, near-surface exploration targets," commented Company President and CEO, Dustin Angelo. "Our top priority continues to be the growth of near-surface, higher-grade mineral resources that would help increase production, lower unit costs and improve the Company's internal-rate-of-return to shareholders."
Each Unit will consist of one flow-through common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") to be issued on a non-flow-through basis. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a "Warrant Share") at a price of $0.10 for a period of 12 months from the closing date of the Offering. On a per-Unit basis, the Company will allocate $0.0699 of the price per Unit to each flow-through common share and $0.0001 of the price per Unit to the Warrant. An amount equal to the gross proceeds from the flow-through common shares ($0.0699 per flow-through common share) will be used to incur Canadian exploration expenses, as defined under the Income Tax Act (Canada), that will be renounced by the Company in favour of the purchasers of Units (including any units sold pursuant to the Option) with an effective date of no later than December 31, 2016.
It is expected that the proceeds of the Offering will be used for surface exploration activities to test targets located within processing distance of the Company's Pine Cove mill (i.e. Stog'er Tight, Goldenville, Argyle and Viking).
It is anticipated that the private placement will close on or before July 8, 2016, and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and other customary conditions.
All of the securities sold pursuant to the Offering (including any securities sold pursuant to the Option) will be subject to a four month hold period which will expire four months and one day from the date of closing of the Offering.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Units and the common shares and Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
ABOUT ANACONDA MINING INC.
Anaconda is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of 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 ten-fold on the peninsula and gold production to over 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove mill.
Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 km by water (180 km via road) from the Pine Cove mill. The project contains the Thor Deposit and other gold prospects and showings. The Company's plan is to discover and develop more resources within these project areas and double annual production at the Pine Cove mill from its current rate of over 16,000 ounces to 30,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
Paul McNeill, the Company's VP of Exploration and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this press release.
ABOUT RED CLOUD KLONDIKE STRIKE INC.
Red Cloud Klondike Strike Inc. ("Red Cloud KS") is a 'new concept' capital markets advisory firm dedicated solely to the mining sector. It uses its global network of capital markets specialists and extensive experience in the many facets of the business to help companies identify alternative sources of capital and quality actionable growth/divestiture opportunities, and to generate and maintain important relationships with key investors.
Red Cloud KS recently launched the world's first regulated equity crowd funding platform for mining. The signature online investment platform offers a unique alternative method of accessing capital as it enables investors to directly participate in security offerings, and provides issuers the access to a fresh pool of investors in a streamlined, secure, online process. Red Cloud KS is registered as an Exempt Market Dealer (EMD) in all provinces of Canada, as well as the Yukon, and is subject to applicable securities regulations.
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, the Offering, the use of proceeds from the Offering, 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 approval of the Offering 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.: Dustin Angelo, President and CEO, (647) 260-1248, [email protected], www.AnacondaMining.com
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