UPDATE 2-New Island confirms challenge of Anaconda Mining bid

* Says asked regulators to investigate bid for violations

* Says ASC to conduct hearing on Aug. 30
(Adds Anaconda Mining CEO’s response in paragraph 5)

Aug 25 (BestGrowthStock) – New Island Resources (NIS.V: ) confirmed
on Wednesday that it has asked Canadian regulators to determine
whether Anaconda Mining’s (ANX.TO: ) takeover bid for the gold
explorer violated securities laws.

Anaconda Mining, which holds a 41 percent stake in New
Island, had indicated on Tuesday it could go hostile with its
takeover offer for New Island, after the junior miner filed an
application for bid violations with the Alberta Securities
Commission (ASC) and the Ontario Securities Commission.

Later in the day, Anaconda Mining said it would purchase
all New Island shares validly tendered, in addition to the ones
it has already bought, in accordance with applicable securities

“Anaconda’s confirmation by press release yesterday that it
has waived all conditions to its bid confirms that Anaconda’s
previous actions were not in compliance with law,” New Island
said in a statement.

It would be inappropriate for Anaconda Mining to comment
until the regulatory bodies have reviewed the disclosure and
render their decisions, Chief Executive Lewis Lawrick told
Reuters by email.

New Island, which holds gold and base metal properties in
Newfoundland and Labrador, said ASC will conduct a hearing on
Aug. 30 into the bid violation application it filed on Aug. 23.

New Island stock, which has more than doubled in the past
three months, was down about 8 percent at 11 Canadian cents
Wednesday afternoon on the Toronto Venture Exchange.

Anaconda Mining shares were trading down 7 percent at 26.5
Canadian cents on the Toronto Stock Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 2-New Island confirms challenge of Anaconda Mining bid