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Anaconda Mining withdraws Maritime Resources buyout offer

12th July 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX-listed emerging miner Anaconda Mining on Thursday announced the withdrawal of its previously announced buyout bid to acquire all shares of Maritime Resources.

“With the recently completed private placement, Maritime shareholders made it clear that they stood with management and wanted to pursue a standalone strategy to advance the Hammerdown project,” stated the company.

Anaconda last week announced that it would increase its offer by about 28% from 0.39 a common share to 0.50 a common share for each Maritime share, provided that the company did not conclude its private placement. The company on Tuesday rescinded this proposal to increase the offer price, before cancelling the offer on Thursday. 

Anaconda believed it could create more value for Maritime shareholders through the combination of the two companies’ assets than what Maritime could have done on its own.

Maritime on Friday closed the private placement, which raised C$1.4-million through the issuance of 7.8-million units at C$0.1 a unit and 5.17-million flow through units at C$0.12 a unit. The proceeds of the financing will go towards advancing the Hammerdown mine project and the Whisker Valley project, in Newfoundland, as well as for general capital and corporate purposes.

Anaconda pointed out on Tuesday that the private placement had diluted Maritime’s shareholders by 23%.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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