TORONTO, June 18 /CNW/ - Navina Asset Management Inc. ("Navina") is pleased to announce that it has acquired ownership of 3,048,000 shares of New Island Resources Inc. ("New Island", TSXV:NIS), representing approximately 6.45% of New Island's total outstanding shares, on behalf of funds that it manages and that it supports the offer from Anaconda Mining Inc. ("Anaconda", TSX:ANX) to acquire all of the outstanding shares of New Island.
Navina Asset Management believes that a combined Anaconda and New Island represents the ideal outcome for shareholders of New Island for the following reasons:
1. Superior assets - the combined entity will own 100% of the Pine Cove
Gold Mine and a promising portfolio of iron ore assets
2. Maximum synergies - a merger with Anaconda maximizes the value of the
Pine Cove Gold Mine asset and minimizes costs
3. Compelling growth - the combined entity will have the management
depth and access to capital required to capitalize on the value of
its existing and future potential assets
Navina CEO Ravi Sood said, "We at Navina Asset Management are committed to maximizing the value of our investments. We believe in the value of the Pine Cove gold mine and that owning 100% of this mine through owning shares in a combined Anaconda and New Island is a compelling investment for our clients.
Anaconda management has significantly expanded its management strength in the past year and now has a world-class team ideally suited to operate the Pine Cove Gold Mine and maximize shareholder value for this asset.
By tendering to the Anaconda bid New Island shareholders will also gain exposure to Anaconda's portfolio of iron ore assets in Chile which we believe to possess significant latent value. We are optimistic that this value will be unlocked in the future and that this could translate to substantial value creation for shareholders.
We believe value will be maximized for New Island shareholders if they are allowed to determine the future of their company unencumbered by any unnecessary costs or economic disincentives meant to favour one transaction over another. We strongly encourage the management of New Island and Anaconda to conclude a friendly merger transaction in the interest of minimizing costs and maximizing shareholder value."
SOURCE NAVINA ASSET MANAGEMENT INC.
For further information: For further information: Catherine Stretch, Chief Operating Officer, Telephone: (416) 362-6283, Email: firstname.lastname@example.org; Please visit: www.NavinaAsset.com