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TORONTO, Oct. 20, 2017 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) is pleased to announce
that it proposes to complete a non-brokered private placement
consisting of up to 20,437,500 common shares, which qualify as
"flow-through shares" within the meaning of the Income Tax Act
(Canada), ("FT Shares") at a price
of $0.08 per FT Share, and up to
11,538,462 units of the Company (the "Units") at a price of
$0.065 per Unit, for aggregate gross
proceeds of up to $2,385,000 (the
"Offering"). Each Unit will consist of one common share and
one-half of one common share purchase warrant (each whole common
share purchase warrant, a "Warrant"). Each Warrant will entitle the
holder thereof to purchase one common share of the Company (a
"Warrant Share") at a price of $0.105
for a period of three years 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 $0.21 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.
It is expected that the gross proceeds from the FT Share portion
of the Offering will be primarily used for exploration activities
at Anaconda's Goldboro Project in Nova
Scotia and the Argyle discovery at the Point Rousse Project
in Newfoundland, and the net
proceeds from the Unit portion of the Offering will be used for
general corporate purposes.
Any securities to be issued under the Offering will be subject
to a hold period of four months and a day from the closing date of
the Offering in accordance with the rules and policies of the TSX,
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.
ABOUT ANACONDA
Anaconda Mining is a TSX-listed gold mining, exploration and
development 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
Pine Cove open pit mine, the fully-permitted Pine Cove Mill and
tailings facility, the Stog'er Tight deposit, a new discovery
called Argyle, and approximately 5,800 hectares of prospective
gold-bearing property. Anaconda is also developing the recently
acquired Goldboro Project in Nova
Scotia, a high-grade Mineral Resource, with the potential to
leverage existing infrastructure at the Company's Point Rousse
Project.
The Company also has a pipeline of organic growth opportunities,
including the Viking and Great Northern Projects on the Northern
Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to the Offering, use of proceeds and
Toronto Stock Exchange acceptance. 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 May 31, 2017,
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.
The securities offered 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.
SOURCE Anaconda Mining Inc.