TORONTO, Aug. 27 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) confirms that its offer ("Offer") to purchase all of the outstanding common shares ("New Island Shares") of New Island Resources Inc. ("New Island") will expire at 5:00 p.m. (Toronto time) on Tuesday, August 31, 2010. No extensions will be made. The Offer is for all of the issued and outstanding New Island Shares on the basis of 0.42 of a common share of Anaconda for each New Island Share.
"This is it. There will be no more extensions.", stated Anaconda's President and Chief Executive Officer, Lew Lawrick, adding "we were firmly in control of our destiny with a foundation of 41% before this final extension period commenced and that figure is expected to grow significantly by Tuesday's expiry of our Offer. We therefore encourage New Island Shareholders who have not yet tendered to not be left behind."
As previously announced, Anaconda has requisitioned a meeting of shareholders of New Island for the purpose of electing a new Board of Directors of New Island as soon as possible. Anaconda has also requested two Board seats immediately and forwarded to New Island its full slate of Directors which it expects will be put forward at the shareholders meeting New Island has called for September 30, 2010.
Anaconda was informed last night that New Island has called a separate shareholders meeting on November 30, 2010 to deal with Anaconda's requisition. "This is another example of the apparent willingness of current New Island management to allocate valuable company resources to seemingly unproductive uses - why they wouldn't just have one meeting is stupefying, and might cause a reasonable investor to ask hard questions", stated John McBride, Chairman of Anaconda's Board.
Anaconda notes that it continues to hold sufficient New Island Shares to defeat any special resolution of shareholders of New Island to approve any transaction that may be proposed. Shareholders of New Island should be aware that various intermediaries impose an earlier deadline in order to tender their New Island Shares to the Offer. Anaconda encourages each shareholder to check with their intermediary to determine when the Offer must be accepted to meet the new expiry time of 5:00 p.m. (Toronto time) on Tuesday, August 31, 2010.
This press release does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any of the securities of New Island. Such an offer can only be made pursuant to an offer to purchase and accompanying an offering circular filed with the securities regulatory authorities in Canada.
Anaconda is a Toronto, Canada-based mining development and exploration company focused on advancing its principal assets, the Pine Cove Gold Mine in Canada and its portfolio of Chilean iron ore assets. Anaconda is committed to bringing the Pine Cove Gold Mine into full Commercial Production, as well as advancing the exploration and near-term production opportunities of its Chilean iron ore assets. Anaconda continues to evaluate strategies to 'unlock' value attributable to its Chilean iron portfolio for the benefit of its shareholders.
This news release contains certain "forward-looking information" under applicable Canadian securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information. Forward-looking information is often characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are 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 Anaconda's ability to acquire 100% of the New Island common shares and the benefits that may be obtained as a result of the business combination of the two companies. Many of these assumptions are based on factors and events that are not within the control of Anaconda 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, risks relating to international operations, fluctuating prices and currency exchange rates, 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, the business of New Island and Anaconda not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in the Annual Information Form for Anaconda filed with securities regulatory authorities and available at www.sedar.com. Although Anaconda has 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 statements. Anaconda undertakes 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.
SOURCE Anaconda Mining Inc.
For further information: For further information: Lew Lawrick, President and CEO, Anaconda Mining Inc., (647) 478-5307, Email: email@example.com; Greg DiTomaso, Investor Relations, Anaconda Mining Inc., (647) 436-2592, Email: firstname.lastname@example.org, Or visit Anaconda's website: www.anacondamining.com; For a copy of the early warning report, please contact Greg DiTomaso at (647) 436-2592