March 19, 2018 ~ Anaconda Mining Inc. announced today that it intends to make a formal offer to acquire all issued and outstanding common shares of Maritime Resources Corp. which owns the Hammerdown mine near King’s Point.
Maritime has been working to bring Hammerdown back into production, possibly in 2019. It also has additional, very promising, property between Baie Verte road and King’s Point.
Anaconda sent a proposal to Maritime on January 29, 2018. The company says it has repeatedly tried to have “constructive discussions” with the Maritime Resources board of directors.
Anaconda said because of the “lack of engagement”, it has decided to take its offer on directly to Maritime Resources’ shareholders.
Maritime made a public announcement on March 16th, 2018 of the adoption of a shareholders’ rights plan. Maritime’s news release about the rights plan stated:
“The Rights Plan is being adopted to ensure that, in the event of a take-over bid, all shareholders of the Company will be treated fairly and will not be subject to abusive or coercive takeover strategies. […] It has been adopted in connection with an unsolicited offer for the shares of the Company which the Board has determined requires more information to properly assess”
In its March 19th news release, Anaconda listed in length what it considers to be the benefits to Maritime shareholders in the case of an Anaconda take-over.
A quote from Dustin Angelo, Chief Executive Officer of Anaconda:
“[…] Anaconda expects it will be able to accelerate the development of the Hammerdown and Orion gold deposits at a lower capital cost than if the deposits were a stand-alone project. In doing so, we could deliver exceptional value in an expedited fashion to both Maritime and Anaconda shareholders. Despite the insufficient response to date from the board of Maritime, we remain steadfast in our resolve to bring our two companies together and be the catalyst we believe Maritime shareholders have been searching for.”
Anaconda cautioned in its news release that it has not yet “commenced” the offer and under certain circumstances may determine not to proceed.
Anaconda also stated it “assumed a $500,000 interest bearing secured loan provided to Maritime on April 26, 2017.” The company said Maritime has failed to repay the loan and is in default. Anaconda has demanded immediate payment of the loan and interest. If the repayment is not made in full immediately, Anaconda stated it will take steps to collect.
Anaconda Mining is a very well-known company in Newfoundland and Labrador, operating the Point Rousse Project located on the Baie Verte Peninsula. The Point Rousse Project includes the Pine Cove open pit mine, the Pine Cove Mill and tailings facility, the Stog’er Tight Mine and the Argyle deposit. Anaconda is also developing the Goldboro Project in Nova Scotia and has the Tilt Cove Property on the Baie Verte Peninsula.
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[Top image, Hammerdown mine entrance. Maritime Resources image]