Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to
announce that, pursuant to the stock purchase agreement dated December 7, 2011
("SPA"), between Inversiones La Veta SpA ("La Veta"), a wholly owned subsidiary
of Anaconda, and Hierro Tal Tal S.A. ("Tal Tal"), Tal Tal has achieved
commercial production on its first producing iron ore property and made its
first shipment of iron ore concentrate on August 10, 2013. Per the payment terms
of the SPA relating to the commercial production milestones, Tal Tal shall pay
La Veta US$1 million on or before September 9, 2013. 


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.


President and CEO of Anaconda, Dustin Angelo, stated, "Anaconda would like to
congratulate Tal Tal on achieving the commercial production milestone and making
its first shipment. The transaction has been mutually beneficial for both
parties. For Anaconda, the cash generated from the transaction can be reinvested
in its core gold mining business to assist with the Company's growth
objectives."


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 shall be paid on or before 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
dangelo@anacondamining.com
www.anacondamining.com


ProConsul Capital Ltd.
Andreas Curkovic
Investor Relations
(416) 577-9927
acurkovic@proconsulcapital.com
Spanish Mountain Gold (TSXV:SPA)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Spanish Mountain Gold Charts.
Spanish Mountain Gold (TSXV:SPA)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Spanish Mountain Gold Charts.