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TORONTO, June 25, 2018 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX:
ANXGF) is pleased to announce that it has completed a first tranche
of a non-brokered private placement of 8,671,952 units of the
Company ("FT Units") at a price of $0.41 per FT Unit, for aggregate gross proceeds
of $3,555,500. Each FT Unit consists
of one common share of the Company, which qualify as "flow-through
shares" within the meaning of the Income Tax Act
(Canada) ("FT Shares") and
one-half of one non-flow-through common share purchase warrant
(each whole common share purchase warrant, a "Warrant").
Each Warrant entitles the holder thereof to purchase one common
share of the Company (a "Warrant Share") at a price of
$0.55 per Warrant Share until
June 22, 2020. Anaconda expects to
complete a second tranche of the private placement on or around
June 26, 2018 for 2,219,000 FT Units,
for additional aggregate gross proceeds of $909,790.
"We are very pleased with the high level of interest for this
private placement which attracted strong institutional demand from
established mining-focused investors, as well as existing
shareholders. Since the acquisition of the Goldboro Project, we
have achieved very impressive drill results and continue to
demonstrate that the mineral resource is open for expansion. The
proceeds from this placement will enable us to build upon our
recent success of increasing the scale of the Goldboro deposit. At Point Rousse, we have
announced a 5,000-metre drill program to expand the Argyle mineral
resource and target two other high priority exploration targets
within close proximity of the Pine Cove Mill. We are excited about
the resource growth potential at Goldboro and Point Rousse and look forward to
sharing the results as they come available over the next several
months."
~Dustin Angelo, President and CEO, Anaconda Mining
Inc.
Red Cloud Klondike Strike Inc. and M Partners acted as finders
in connection with the Offering. In connection with the first
tranche of the private placement, the Company paid a cash finder's
fee and issued 520,317 non-transferable finder warrants. Each
finder warrant is exercisable for one common share of the Company
at a price of $0.55 until
June 22, 2020.
It is expected that the gross proceeds from the private
placement will be primarily used for exploration activities at the
Company's Goldboro Project in Nova
Scotia and its other deposits in Atlantic Canada.
All the securities sold pursuant to the first tranche of the
private placement are subject to a hold period which will expire on
October 23, 2018 in accordance with
the rules and policies of the Toronto Stock Exchange (the
"TSX") and applicable Canadian securities laws. The private
placement 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
news 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 MINING INC.
Anaconda is a TSX-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,
and approximately 5,800 hectares of prospective gold-bearing
property. Anaconda is also developing the 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 Great Northern Project on the Northern Peninsula of
Newfoundland and the Tilt Cove
Property on the Baie Verte
Peninsula, also in Newfoundland.
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, use of
proceeds, the expansion of the mineral resource, the closing of the
second tranche of the private placement and TSX final acceptance of
the private placement. 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 seven months ended December 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.
SOURCE Anaconda Mining Inc.