TORONTO, Nov. 30 /CNW/ - Anaconda Mining Inc. ("Anaconda") - (TSX: ANX); is pleased to announce a strategic plan to realize the significant value contained within its portfolio of Chilean iron ore assets together with its joint venture partner, Inversiones SBX Limitada ("SBX"). Anaconda and SBX have agreed in principle to roll their respective Chilean iron ore assets into a single dedicated company. The intention of the parties is to create a standalone vehicle resulting in one large world class Chilean iron ore vehicle, separate and apart from Anaconda's producing gold assets.
Anaconda has an interest in two distinct iron exploration and development joint venture projects; Minera Hierro San Gabriel S.A. ("MHSG") and Inversiones Hierro Antofagasta S.A. ("IHA") (collectively, the "Joint Ventures") with SBX. Combining the Joint Ventures into one entity will simplify the current corporate structure and result in the development of economies of scale. Detailed terms of the combination are currently being negotiated with the assistance of the Company's financial advisors Gryphon Partners and could include: a Spin Co IPO of the combined entity; project financing and off take opportunities related to advancing the near term development of the Esperanza deposit controlled by MHSG; Joint venture agreements with strategic partners; further acquisitions; or any combination of the above.
President and CEO of Anaconda, Dustin Angelo, stated, "Both Anaconda and SBX believe that given the positive demand fundamentals for iron ore, along with the favourable operating conditions and readily available infrastructure in the region, the value inherent to these assets now needs to be realized and developed. With the assistance of Gryphon Partners, we have a plan to build a scalable iron ore business with a view to maximizing the value for our shareholders. We will provide timely updates to our shareholders as we advance this initiative forward"
Anaconda is a Toronto, Canada-based mining and exploration company focused on operating the Pine Cove gold mine located near Baie Verte in Newfoundland, Canada and, with its joint venture partner, SBX, advancing the development and exploration of its iron ore portfolio in Chile.
SBX is a private company headquartered in Santiago, Chile with a focus on the exploration and development of base and precious metals, and water resources in South America, and principally in Chile.
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 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.