Anaconda Mining Receives First Commercial Production Payment of US$1 Million from Tal Tal
10 Septiembre 2013 - 6:00AM
Marketwired
Anaconda Mining Inc. (TSX:ANX) ("Anaconda" or "the Company") is
pleased to announce that, on September 9, 2013, it received the
US$1 million payment from Hierro Tal Tal S.A. ("Tal Tal") relating
to the commercial production milestone set forth in the stock
purchase agreement dated December 7, 2011 ("SPA"), between
Inversiones La Veta SpA ("La Veta"), a wholly owned subsidiary of
Anaconda, and Tal Tal.
President and CEO of Anaconda, Dustin Angelo, stated, "This is
an important milestone for Anaconda. Although it is deemed a
non-core asset, our investment in Chile will continue to generate
cash for the Company. We expect ongoing royalties of approximately
$125,000 per quarter and we will get another US$2 million payment
in less than two years from now. In addition, we can still earn up
to US$4 million in lump sum payments based on the price at which
the iron ore is sold for certain volumes of production."
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.
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 was paid
on 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
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