TORONTO and ROUYN-NORANDA, Que. – Anaconda Mining and Orex Exploration are a step closer to executing an agreement whereby Anaconda will acquire all of the common shares of Orex. Proxy advisory firm Institutional Investor Services has recommended that shareholders of both companies vote in favour of the takeover.
Anaconda will issue 0.85 of a share for every Orex share held by the second company’s investors. Orex will become a wholly owned subsidiary of Anaconda. Existing Anaconda shareholders will hold about 54.9% and Orex shareholders will hold 45.1% of Anaconda.
Benefits of the combined companies include lower capital costs for development at Orex’s Goldboro gold project. Anaconda’s Pointe Rousse facilities will process the ore. Anaconda will strengthen its market presence and its ability to take part in any future consolidation of mining activities in Atlantic Canada.
The boards of both Anaconda and Orex have voted in favour of the arrangement. A vote by the shareholders of both companies is pending.
Please see both www.AnacondaMining.com and www.OrexExploration.ca.