Good News Following completion of the Arrangement, Orex will be a wholly owned subsidiary of Anaconda. Existing Anaconda and Orex shareholders will own approximately 54.9% and 45.1% of the combined company, respectively, on a non-diluted basis.
Arrangement Benefits
The Arrangement is intended to provide significant benefits for securityholders of both companies, including:
- -Acceleration of development of Orex's Goldboro Project ("Goldboro Project") by combining Orex's mineral resources with Anaconda's proven operating infrastructure at the Point Rousse Project ("Point Rousse Project") and experienced management team;
- -Potential for substantial capital cost reductions at the Goldboro Project through leveraging Anaconda's existing port, mill and tailings facilities;
- -Potential for gold producing operations in two mining friendly jurisdictions in Atlantic Canada - Newfoundland & Labrador and Nova Scotia;
- -Establishment of a strong position from which to participate in any future consolidation in the mining industry in Atlantic Canada; and
- -Greater market presence, enhanced liquidity and a broader capital markets profile.
Anaconda's Point Rousse Project has been producing gold for nearly seven years and, in that time, Anaconda has incrementally improved its operating infrastructure, which includes a 1,300-tonne per day mill, tailings capacity for approximately 15 years (based on the current mill throughput rate) and a port facility. Both the Point Rousse Project and Goldboro Project are located on tidewater. With favourable logistics and existing infrastructure in place, Anaconda expects it will be able to accelerate the development of the Goldboro Project at a lower capital cost than if it were a stand-alone project.
Combining the two companies will create a single enterprise with expanded mineral resources, most of which are high grade. On a pro-forma basis, the mineral resource portfolio will include 457,400 Measured and Indicated ounces of gold and 372,900 Inferred ounces at the Goldboro Project in Nova Scotia (see Orex's news release dated March 1, 2017); 107,230 Indicated ounces of gold and 37,030 Inferred ounces at the Point Rousse Project; and 83,000 Indicated ounces of gold and 31,000 Inferred ounces at the Viking Project ("Viking Project") in Newfoundland and Labrador (Table 1). Detailed resource tables (Table 2) prepared in accordance with National Instrument 43-101 ("NI 43-101") are presented below.