TORONTO, March 12, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") – (TSX: ANX) (OTCQX: ANXGF) is
pleased to announce that it has entered into a $5 million term loan (the "Facility") from the
Royal Bank of Canada ("RBC"). The
Facility will provide the Company with enhanced financial
flexibility and allow it to complete all pre-construction activity
at its 100%-owned Goldboro Gold Project in Nova Scotia ("Goldboro") without further
equity financing. In 2019, Anaconda expects to finalize a
feasibility study for Goldboro and
complete all work required to obtain mining permits to be
shovel-ready in early 2020. The Facility was arranged with the
support of Export Development Canada ("EDC"), which has issued a
performance guarantee over half of the principal amount.
"The financial commitment from RBC and EDC demonstrates their
confidence in the Anaconda management team, the continued cash flow
generation at the Point Rousse Project, and our overall ability to
advance our growth plans in Atlantic
Canada. The Facility now enables us to execute on our
business plan in an accelerated, focused manner, with our debt
service obligations easily funded from our mine operations. This
Facility, combined with our continued free cash flow generation
from the Point Rousse Project, will enable us to advance the
Goldboro Gold Project to a construction-decision stage in early
2020, at an exceptionally low cost of capital and without any
dilution to our shareholders."
~ Dustin Angelo, President and
CEO
Terms of the Facility
The Facility is repayable monthly over a 24-month term with
certain prepayment options. It is subject to an existing general
security agreement with RBC and a debt service coverage ratio
covenant to be measured on an annual basis, based on a ratio of a
measure of earnings to interest expense and scheduled principal
payments. The Facility was arranged with the support of EDC, which
has issued a performance guarantee over half the principal amount.
The Facility carries a fixed interest rate of 4.6% and performance
guarantee fee by EDC of 1.85%, payable quarterly based on the
proportional amount outstanding. The full $5
million has now been drawn and the initial monthly payment
is due 30 days from drawdown.
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining,
development, and exploration company, focused in the prospective
Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point
Rousse Project located in the Baie Verte Mining District in
Newfoundland, comprised of the
Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral
Resource, the fully-permitted Pine Cove Mill and tailings facility,
deep water port, and approximately 9,150 hectares of prospective
gold-bearing property. Anaconda is also developing the Goldboro
Gold Project in Nova Scotia, a
high-grade Mineral Resource, subject to a 2018 a preliminary
economic assessment which demonstrates a strong project economics.
The Company also has a wholly owned exploration company that is
solely focused on early stage exploration in Newfoundland and New
Brunswick.
ABOUT EDC
Export Development Canada (EDC) is a financial Crown corporation
dedicated to helping Canadian companies of all sizes succeed on the
world stage. As international risk experts, EDC equips Canadian
companies with the tools they need – the trade knowledge, financing
solutions, investments, insurance, and connections – to take on the
world with confidence. Underlying all of EDC's support is a
commitment to sustainable and responsible business.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian and United States securities legislation.
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.
