April 13, 2018 ~ Anaconda Mining announced today that it has made a formal offer to acquire all of the issued and outstanding common shares of Maritime Resources. If successful, this would lead to Anaconda taking over Maritime, and Hammerdown mine.
Full details of the offer have been sent to Maritime shareholders.
Anaconda Mining announced on March 19th that it was aiming to make a formal offer to acquire Maritime Resources. In a news release dated March 20th, Maritime publicly responded and added it “is disappointed with Anaconda’s tactics…”.
Anaconda is a large gold producer which sold $7.6 million in gold so far in 2018. Maritime Resources is a junior mineral exploration company.
The offer, that would see Maritime shareholders receiving Anaconda shares, will be open for acceptance until 5:00 pm (ET) on July 27, unless the offer is abridged, extended or withdrawn.
[TOP image is view of Hammerdown mine site – Google Earth]
Maritime, meanwhile, has been pushing forward with its efforts to reopen Hammerdown mine, located near King’s Point, NL. Yesterday Maritime Resources announced the company had received the Newfoundland and Labrador Government permit to dewater and to get men drilling underground at Hammerdown.
Anaconda asserted in its April 13th news release that it can move the Hammerdown area property to production faster than Maritime, and at lower costs.
Anaconda asserts “Maritime’s Green Bay Property cannot be placed into production unless Maritime is first able to permit and construct a mill and tailings facility, which would take extensive capital (that is not available to Maritime) and time.” Anaconda claims that permitting and additional tailings construction work would be required for use of the Rambler Nugget Pond Mill on the Baie Verte Peninsula.
Maritime has previously stated it has an agreement with Rambler Metals and Mining regarding using Rambler’s Nugget Pond Mill. Anaconda claims “for the existing Nugget Pond Mill to be available to process ore from the Green Bay Property, Rambler Metals would have to either divert its current processing operations to another mill or build a new grinding circuit. Construction of a new grinding circuit would require capital that Rambler does not currently have available…”
Anaconda also speculates that if its offer “is not successful and no competing transaction is made, the Company believes the trading price of Maritime Shares may decline to pre-Offer levels or lower.”
Read Anaconda’s full April 13th 2018 news release