Great news. Delays coming to an end.

"gold production is imminent"; "Final commissioning of the Pine Cove mill facilities is now under way."; "Gold processing is therefore scheduled to commence midmonth."

red911

Anaconda Mining extends Pine Cove credit facility

2008-04-03 11:12 ET - News Release

Mr. Lew Lawrick reports

ANACONDA EXTENDS MATURITY DATE ON THE PINE COVE GOLD MINE CREDIT FACILITY

Anaconda Mining Inc. and Auramet Trading LLC have agreed to an extension of the maturity date of the credit facility regarding the development of Anaconda's Pine Cove gold mine, located in Baie Verte, Nfld. As at March 31, 2008, Anaconda had repaid, as per schedule, $1.5-million (U.S.) of the outstanding original principal amount of $2.5-million (U.S.) of the facility, leaving an outstanding balance of $1-million (U.S.). The maturity date of the outstanding balance has been extended from March 31, 2008, to May 31, 2008.

Lewis Lawrick, president and chief executive officer of Anaconda, comments: "Construction at Pine Cove commenced in June, 2007, and despite minor delays in the construction and commissioning schedule over this past, severe winter at Pine Cove, gold production is imminent. As such, and in line with our financial management practices, we have extended repayment of the final balance of principal on this facility to coincide with cash flow from mining operations." All other terms of the original credit facility remain in effect, including the conversion feature.

Final commissioning of the Pine Cove mill facilities is now under way. The front end of the plant, including crushers, surge bin, stacker, reclaim and concentrator, has been fully commissioned. Wet commissioning associated with the remainder of the plant is continuing to be followed by solids commissioning. Gold processing is therefore scheduled to commence midmonth. In anticipation thereof, the company is currently hiring additional employees to fulfill production roles within the plant.

As previously reported in Stockwatch on March 19, 2008, upon commencement of commercial production at the Pine Cove mine, Anaconda will have satisfied all obligations to earn a 60-per-cent interest in the Pine Cove joint venture from New Island Resources Inc. New Island will retain a 40-per-cent interest in the Pine Cove mining project. Anaconda will earn 100 per cent of project cash flow until repayment of capital expenditures is completed. Under the terms of the joint venture agreement, Anaconda will also receive a 5-per-cent management fee over the life of the mine.

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