Anaconda Mining completes $2.03 million brokered flow through private placement


TORONTO, July 27, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) is pleased to announce that it has issued 29,103,787 flow through units of the Company (the "Units") at a price of $0.07 per Unit for aggregate gross proceeds of $2,037,265.09 pursuant to its previously announced private placement (the "Offering").  Each Unit consists of one flow-through common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") issued on a non flow-through basis. Each Warrant entitles the holder thereof to purchase one common share of the Company (a "Warrant Share") at a price of $0.10 until July 27, 2017.  On a per Unit basis, the Company has allocated $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 with an effective date of no later than December 31, 2016.

"The Company plans to use the proceeds raised to accelerate the surface exploration near the Company's 1,200 tpd Pine Cove mill where the Company has successfully identified several higher grade 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 grow our production profile, lower unit costs and improve the Company's internal-rate-of-return to shareholders."

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).

Red Cloud Klondike Strike Inc. acted as agent with respect to the Offering, pursuant to which it received a cash commission equal to 6% of the gross proceeds of the Offering (which for greater certainty, excluded securities acquired by investors identified by the Company) and 1,376,560 broker warrants each of which is exercisable to acquire one common share at a price of $0.10 until July 27, 2017.

All of the securities sold pursuant to the Offering are subject to a hold period which will expire on November 28, 2016 in accordance with the rules and policies of the Toronto Stock Exchange and applicable Canadian securities laws.  The Offering remains subject to the final approval of the Toronto Stock Exchange.

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 were not offered or sold in the United States.


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 Mining 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. 


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 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 final 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,,


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890