Anacortes Mining Corp has provided an update on its recent efforts to build shareholder value through an on-going strategic review process.
The junior resource firm told investors it has been engaged in meaningful discussions with a certain party over the past five months regarding a possible transaction that could provide several strategic benefits to Anacortes, including a logical fit of quality assets, near-term production and cash flow generation, and a stronger financial position to fund the development of Anacortes' Tres Cruces project in Peru.
The growth-oriented gold company noted a non-binding letter of intent (LOI) was executed with the interested party for exclusive negotiations for a limited period of time.
READ: Anacortes Mining says drilling at its Tres Cruces gold project in Peru indicates additional mineralization potential
Anacortes added that in an effort to conserve cash while discussions regarding this potential transaction were advanced, the company has temporarily suspended drilling operations at Tres Cruces although certain metallurgical test work and environmental baseline studies will continue as part of a planned feasibility study on the gold oxide project.
As well, Anacortes said execution of the definitive agreement and closing of the transaction is conditional upon the interested party securing the necessary working capital to advance its assets upon closing.
As part of the strategic review process, the company stated that its board and management continuously review the relative strategic benefits of continuing as a single-asset company or corporate transactions that could involve acquisitions of complementary assets or the sale of Anacortes Mining to logical suitors.
Anacortes Mining owns a 100% interest in the Tres Cruces gold project located in Peru.
Contact Sean at sean@proactiveinvestors.com