Anaconda to pay C$4.1 million for Pine Cove mine stake

(BestGrowthStock) – Anaconda Mining Inc (ANX.TO: ) struck a deal to buy New Island Resources’ (NIS.V: ) interest in the Pine Cove mine and mill for about C$4.1 million in stock, nearly six months after launching a takeover bid.

According to the deal, New Island shareholders will get 0.45 Anaconda Mining shares for each common share of New Island.

On August 30, Anaconda Mining struck a friendly deal with New Island on the Pine Cove mine, after having warned to go hostile.

Toronto-based Anaconda Mining has a 49.97 percent stake in New Island, and shareholders owning about 12.82 percent in New Island have agreed to vote in favor of the deal.

The arrangement, which has been approved by the boards of directors of both companies, is yet to be approved by New Island shareholders, Anaconda Mining said in a statement.

The deal has a termination fee of C$300,000.

Anaconda Mining shares, which have lost 33 percent since June, closed at 18 Canadian cents on Thursday on the Toronto Stock Exchange.

(Reporting by Arnika Thakur in Bangalore; Editing by Roshni Menon)

Anaconda to pay C$4.1 million for Pine Cove mine stake