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TORONTO, June 17, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce that it proposes to complete a non-brokered private
placement consisting of up to 5,714,286 "flow-through" units of the
Company (the "FT Units") at a price of $0.35 per FT Unit, and up to 5,555,556 units of
the Company (the "Units") at a price of $0.27 per Unit, for aggregate gross proceeds of
up to $3,500,000 (the "Offering").
Each FT Unit will consist of one common share, which qualify as
"flow-through shares" within the meaning of the Income Tax Act
(Canada), and one-half of one
common share purchase warrant (each whole common share purchase
warrant, a "Warrant"). Each Unit will consist of one common share
and one-half of one Warrant. Each Warrant will entitle the holder
thereof to purchase one common share of the Company (a "Warrant
Share") at a price of $0.45 for a
period of 18 months following the closing date of the Offering. The
Warrants will contain an acceleration clause whereby if the common
shares of Anaconda trade at a volume weighted average price of
$0.70 or more for 20 consecutive
trading days, Anaconda will have the right to accelerate the
exercise period to a period ending at least 30 days from the date
that notice of such acceleration is provided to the holders of the
Warrants.
"We are excited to execute this financing which will allow
Anaconda to commence work at its recently expanded, highly
prospective Tilt Cove Project. This project consists of a large,
recently assembled land package that includes the prospective host
rocks along-strike from the past producing, high-grade, Nugget Pond
mine, which had an average mill grade of 9.85 g/t gold. We will
also continue advancing the high-grade Goldboro Gold Project, both
from the perspective of expanding and upgrading the mineral
resource and advancing the project towards a construction decision.
Furthermore, we expect to continue drilling around our existing
mining operations in the Baie Verte Mining District, with the aim
of expanding the life of mine of the Company's Point Rousse
Complex. This is a transformational time for Anaconda as it
continues its growth trajectory in Atlantic Canada."
~ Kevin Bullock, Chief
Executive Officer, Anaconda Mining Inc.
It is expected that the gross proceeds from the FT Unit portion
of the Offering will be primarily used for exploration activities
at Anaconda's Tilt Cove Project in Newfoundland and the high-grade Goldboro
Project in Nova Scotia, and the
net proceeds from the Unit portion of the Offering are expected to
be used for exploration around the Company's existing mine
operations, the continued advancement of the Goldboro Gold Project,
and general corporate purposes.
Any securities to be issued under the Offering will be subject
to a hold period in Canada of four
months and a day from the closing date of the Offering in
accordance with the rules and policies of the Toronto Stock
Exchange ("TSX"), and applicable Canadian securities laws and such
other further restrictions as may apply under foreign securities
laws. The Offering remains subject to the approval of the TSX.
It is anticipated that insiders of the Company may participate
in the Offering. By virtue of their participation, the Offering
would constitute a "related party transaction" under applicable
securities laws. The Company expects to release a material change
report including details with respect to the related party
transaction less than 21 days prior to the closing of the Offering,
which the Company deems reasonable in the circumstances so as to be
able to avail itself of potential financing opportunities and
complete the Offering in an expeditious manner. As the related
party transaction will not exceed specified limits and will
constitute a distribution of securities for cash, it is expected
that neither a formal valuation nor minority shareholder approval
will be required in connection with the Offering.
The securities offered (and any underlying securities, as
applicable) have not been, and will not be, registered under the
U.S. Securities Act of 1933, as amended (the "U.S. Securities Act")
or any U.S. state securities laws, and may not be offered or sold
in the United States or to, or for
the account or benefit of, United
States persons absent registration or any applicable
exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy securities in the United
States, nor shall there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
This news release has been reviewed and approved by
Paul McNeill, P. Geo., VP
Exploration with Anaconda, a "Qualified Person", under National
Instrument 43-101 Standard for Disclosure for Mineral
Projects.
ABOUT ANACONDA
Anaconda is a TSX and OTCQX-listed gold mining, development, and
exploration company, focused in Atlantic
Canada. The company operates mining and milling operations
in the prolific Baie Verte Mining District of Newfoundland which includes the
fully-permitted Pine Cove Mill, tailings facility and deep-water
port, as well as ~11,000 hectares of highly prospective mineral
lands including those adjacent to the past producing, high-grade
Nugget Pond Mine. Anaconda is also developing the Goldboro Gold
Project in Nova Scotia, a
high-grade resource and the subject of an on-going feasibility
study.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian and United States securities legislation.
Forward-looking information includes, bit is not limited to,
information with respect to the Offering, the use of proceeds and
the TSX acceptance of the Offering. 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 state 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 is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Anaconda to be
materially different from those expressed or implied by such
forward-looking information, including risks associated with the
exploration, development and mining such as economic factors as
they effect exploration, future commodity prices, changes in
foreign exchange and interest rates, actual results of current
production, development and exploration activities, government
regulation, political or economic developments, environmental
risks, permitting timelines, capital expenditures, operating or
technical difficulties in connection with development activities,
employee relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of resources, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Anaconda's annual information form
for the year ended December 31, 2018,
available on www.sedar.com. Although Anaconda has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. Anaconda does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.