Anaconda Mining Inc announced that it has formally commenced a share exchange takeover bid for New Island Resources Inc to acquire all of the issued and outstanding common shares of New Island.

Pursuant to the offer, each New Island shareholder will receive 0.3333 of an Anaconda common share for each New Island common share tendered under the Offer. The takeover bid is subject to customary conditions, including that a minimum of 66.75% of the outstanding New Island common shares on a fully diluted basis are tendered to the Offer, receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange, the absence of any material adverse change with respect to New Island, the absence of certain prohibited activities on the part of New Island and no untrue statements or omissions in New Island's public disclosure. Anaconda intends to take all necessary steps to acquire any New Island common shares that remain outstanding following the expiry of the offer.

Mr Lew Lawrick president & CEO of Anaconda said that "This transaction will allow New Island shareholders to benefit immediately from the ramp up in production and future exploration upside of Pine Cove. In addition, New Island shareholders will also participate in the advancement of Anaconda's significant iron ore exploration and development portfolio in Chile, whereby Anaconda has recently increased its equity interest in a portfolio of assets with both near term development potential and significant exploration upside. We firmly believe that the shareholders of both New Island and Anaconda will realize tangible benefits from this transaction."