Anaconda Mining to Receive First Commercial Production Payment of US $1 Million From Tal Tal by September 9, 2013
August 26 2013 - 7:00AM
Marketwired
Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is
pleased to announce that, pursuant to the stock purchase agreement
dated December 7, 2011 ("SPA"), between Inversiones La Veta SpA
("La Veta"), a wholly owned subsidiary of Anaconda, and Hierro Tal
Tal S.A. ("Tal Tal"), Tal Tal has achieved commercial production on
its first producing iron ore property and made its first shipment
of iron ore concentrate on August 10, 2013. Per the payment terms
of the SPA relating to the commercial production milestones, Tal
Tal shall pay La Veta US$1 million on or before September 9,
2013.
La Veta will also begin to receive a gross sales royalty of
0.80% on a calendar quarterly basis on the sale of iron ore
concentrate from the first producing iron ore property. The first
shipment that departed in early August contained 163,582 dry metric
tonnes of iron ore concentrate grading 63.5% iron (certified by
SGS). The total estimated royalty payment for this shipment is
expected to be approximately US$125,000 and will be payable on or
before October 15, 2013.
President and CEO of Anaconda, Dustin Angelo, stated, "Anaconda
would like to congratulate Tal Tal on achieving the commercial
production milestone and making its first shipment. The transaction
has been mutually beneficial for both parties. For Anaconda, the
cash generated from the transaction can be reinvested in its core
gold mining business to assist with the Company's growth
objectives."
Overview of lump sum payments from the transaction:
Anaconda's wholly owned subsidiary, La Veta, sold its shares
representing a 50% ownership stake in Minera Hierro San Gabriel
S.A. ("MHSG") and a 20% ownership stake in Inversiones Hierro
Antofagasta S.A. ("IHA") to Tal Tal for up to US$11 million in cash
payments, of which US$2 million was paid at closing and an
additional US$2 million was paid on May 30, 2012. Now that
commercial production has been achieved, La Veta will receive an
additional US$3 million, of which the first US$1 million shall be
paid on or before September 9, 2013. The remaining US$2 million is
due the earlier of (1) 30 days after the first shipment from the
second producing iron ore property and (2) two years from the
anniversary date when Tal Tal achieved commercial production from
the first producing iron ore property. Furthermore, La Veta can
earn up to another US$4 million based on the sales price realized
for certain volumes of production from the properties, as defined
in the SPA.
ABOUT ANACONDA
Headquartered in Toronto, Canada, Anaconda is a growth oriented,
gold mining and exploration company with a producing asset located
on the Baie Verte Peninsula in Newfoundland, Canada called the Pine
Cove mine.
FORWARD LOOKING STATEMENTS
This document contains or refers to forward-looking information.
Such forward-looking information includes, among other things,
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 private placement 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.
Contacts: Anaconda Mining Inc. Dustin Angelo President and CEO
(647) 260-1248dangelo@anacondamining.com www.anacondamining.com
ProConsul Capital Ltd. Andreas Curkovic Investor Relations (416)
577-9927acurkovic@proconsulcapital.com
Anaconda Mining (TSX:ANX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Anaconda Mining (TSX:ANX)
Historical Stock Chart
From Jul 2023 to Jul 2024