TORONTO, Oct. 19, 2015 /CNW/ - Anaconda Mining Inc.
("Anaconda" or "the Company") - (TSX:ANX) announces that it has
entered into a definitive agreement with a major insurance company
to provide surety bonding in the amount of approximately
$1.8 million (the "Bond") for the
Company's reclamation obligations with the Ministry of Natural
Resources ("MNR") of the Province of Newfoundland and Labrador. Now that the Bond is in place,
Anaconda has taken back $788,000 in
cash from the MNR that was being held to collateralize the
Company's reclamation obligations. The Bond guarantees the funding
of the Company's mine closure plan at its Point Rousse Project.
Anaconda currently pays an annual premium of 2.5% of the amount of
surety bonding outstanding. Also, the Company has more capacity to
bond additional areas at the project as it grows.
President and CEO, Dustin Angelo,
stated, "The Company, its insurance providers and the MNR have
worked diligently over the last few months to put in place this low
cost security arrangement. The Bond frees up almost $800,000 in working capital, strengthens our
balance sheet and demonstrates a confidence in the management team
at Anaconda and the operations at the Point Rousse Project."
ABOUT ANACONDA
Headquartered in Toronto,
Canada, Anaconda is a growth oriented, gold mining and
exploration company with a producing project, called the Point
Rousse Project, and approximately 6,316 hectares of exploration
property on the Ming's Bight Peninsula located in the Baie Verte
Mining District in Newfoundland,
Canada. Since 2012, Anaconda has increased its property
control by almost ten-fold. It is currently exploring three
primary, prospective gold trends, which have approximately 20
kilometres of cumulative strike length and include four deposits
and numerous prospects and showings, all within 8 kilometres of the
Pine Cove mill. The Company's plan is to discover and develop more
resources within the project area and double annual production from
its current rate of approximately 15,000 ounces to 30,000
ounces.
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 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.
SOURCE Anaconda Mining Inc.