Anaconda frees up nearly $800,000 in restricted cash
October 19, 2015 (Source: 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.”
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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.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>