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Anaconda Mining Inc (2)
Symbol ANX
Shares Issued 118,794,118
Close 2019-06-14 C$ 0.305
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Anaconda Mining arranges $3.5-million placement

2019-06-17 07:33 ET - News Release

Mr. Kevin Bullock reports


Anaconda Mining Inc. proposes to complete a non-brokered private placement consisting of up to 5,714,286 flow-through units of the company at a price of 35 cents per flow-through unit, and up to 5,555,556 units of the company at a price of 27 cents per unit, for aggregate gross proceeds of up to $3.5-million. Each flow-through 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 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 at a price of 45 cents 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 70 cents 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 grams per tonne 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," said Kevin Bullock, chief executive officer, Anaconda Mining.

It is expected that the gross proceeds from the flow-through 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, 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 Toronto Stock Exchange.

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.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda, a qualified person, under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

About Anaconda Mining Inc.

Anaconda is a Toronto Stock Exchange- 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. 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 strong project economics.

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