TORONTO, Oct. 1 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) is pleased to announce that it has closed the issuance of $770,000 aggregate principal amount of 12.5% secured non-convertible debentures maturing July 20, 2011 (the "Debentures"). The Debentures also include the issuance of 236,000 common share purchase warrants, each whole warrant entitling the holder to acquire one common share of Anaconda at a price of $0.30 per common share for a period of eighteen months from the closing of the private placement. The net proceeds received by Anaconda were $750,000.

Anaconda President and CEO, Dustin Angelo, stated, "This small financing will solidify our working capital position as work continues on optimizing throughput and recovery at our Pine Cove Gold Mine. In this period of record gold prices we look forward to leveraging the cash flow that a fully optimized gold circuit at Pine Cove will provide for Anaconda and its shareholders."

About Anaconda
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Anaconda is a Toronto, Canada-based mining development and exploration company focused on advancing its principal assets, the Pine Cove Gold Mine in Canada and its portfolio of Chilean iron ore assets. Anaconda has reached Commercial Production at Pine Cove and is currently working through optimization of its milling operations. Anaconda, with its advisors, continues to evaluate strategies to 'unlock' value attributable to its Chilean iron portfolio for the benefit of its shareholders.

FORWARD-LOOKING INFORMATION

This news release contains certain "forward-looking information" under applicable Canadian securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information. Forward-looking information is often characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include Anaconda's ability to acquire 100% of the New Island common shares and the benefits that may be obtained as a result of the business combination of the two companies. Many of these assumptions are based on factors and events that are not within the control of Anaconda and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, the business of New Island and Anaconda not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in the Annual Information Form for Anaconda filed with securities regulatory authorities and available at www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Anaconda undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

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For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: dangelo@ravenhillpartners.com; or Anaconda Mining Inc., Greg DiTomaso, Investor Relations, (647) 436-2592, Email: info@anacondamining.com; Or visit Anaconda's website: www.anacondamining.com