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TORONTO, July 10, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce that it has completed a non-brokered private placement
consisting of 7,515,701 "flow-through" units of the Company (the
"FT Units") at a price of $0.35 per
FT Unit, and 7,630,185 units of the Company (the "Units") at a
price of $0.27 per Unit, for
aggregate gross proceeds of up to $4,690,646 (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 pleased with the level of interest in the private
placement, which led to us upsizing the financing from the original
announcement. The proceeds from the Offering will allow us to
commence work at our recently expanded, highly prospective Tilt
Cove Project, and continue advancing the high-grade Goldboro Gold
Project, both from the perspective of working towards expanding and
upgrading the mineral resource and advancing the project towards a
construction decision. We will also continue exploration around our
existing mine operations and invest in our operational
infrastructure."
~ Kevin Bullock, Chief
Executive Officer
In connection with the Offering, the Company paid a cash
finder's fee and issued 264,600 non-transferable finder warrants.
Each finder warrant is exercisable for one common share of the
Company at a price of $0.45 for a
period of 18 months following the closing date of the Offering,
subject to the same acceleration as provided for in the
Warrants.
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 Gold Project in Newfoundland and the high-grade Goldboro Gold
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.
All of the securities sold pursuant to the Offering are subject
to a hold period which will expire on November 11, 2019 in accordance with the rules
and policies of the Toronto Stock Exchange (the "TSX") and
applicable Canadian securities laws. The Offering remains subject
to the final approval of the TSX.
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.
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 at its Tilt Cove Gold Project. 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, but is not limited to, the
use of proceeds and TSX final 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.
