TORONTO, Dec. 21, 2015 /CNW/ - Anaconda Mining Inc.
("Anaconda" or "the Company") - (TSX:ANX) is pleased to announce
that the Company entered into an agreement (the "Agreement") on
December 18, 2015 with Auramet
International LLC ("Auramet") through which Auramet has paid
USD$500,000 (USD$980 per ounce) (the "Prepayment Amount"),
less fees, to Anaconda in exchange for 510 ounces of gold. Anaconda
will deliver these ounces to Auramet in 10 deliveries of 51 ounces
per month from January to October
2016. The Prepayment Amount was priced based on a spot price
on December 18, 2015 of USD$1,067 per ounce. Anaconda also agrees to sell
100% of its production to Auramet for a minimum of one year from
the last contractual delivery date (October
2016).
President and CEO, Dustin Angelo,
stated, "The Company is very adept at managing its finances and has
operated strictly from cash flow for over four years, internally
funding capital projects and growing from just the Pine Cove mine
to the much larger Point Rousse Project. We believe the Auramet
transaction is a favorable financing that will help accelerate our
pace of exploration and development. The immediate cash infusion
will allow Anaconda to reach the desired work pace and take another
significant step towards our goal of adding ten years of production
to the project."
The Prepayment Amount will be used to advance exploration on
several areas of the Point Rousse Project with emphasis on adding
resources to the Stog'er Tight deposit and surrounding area,
building upon a recent resource estimate (See Press Release of
October 22, 2015) and promising
results from a trenching and channel sampling program (See Press
Release of December 17, 2015).
ABOUT ANACONDA
Headquartered in Toronto,
Canada, Anaconda is a growth oriented, gold mining and
exploration company with a producing project, called the Point
Rousse Project, and approximately 6,346 hectares of exploration
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 almost ten-fold. It is currently exploring three
primary, prospective gold trends, which have approximately 20
kilometres of cumulative strike length and include four deposits
and numerous prospects and showings, all within 8 kilometres of the
Pine Cove mill. The Company's plan is to discover and develop more
resources within the project area and double annual production from
its current rate of approximately 15,000 ounces to 30,000
ounces.
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 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.