* Says New Island tells regulators of bid violations
* Says New Island did not respond to sweetened offer
* Says can thwart New Island-Mountain Lake deal
* Says will not extend offer beyond Aug. 31
Aug 24 Canada's Anaconda Mining (ANX.TO) warned
it may go hostile with its bid for New Island Resources'
NIS.V interest in a gold mine, after the junior miner filed a
bid violation application with regulators and backed its
planned merger with Mountain Lake Resources MOA.V.
Anaconda Mining, which holds a 41 percent stake in New
Island, said the applications filed by the smaller gold miner
on Aug. 23 with the Alberta Securities Commission and the
Ontario Securities Commission for technical bid violations have
Toronto-based Anaconda, which also has operations in Chile,
had twice raised its offer in its pursuit of New Island's
interest in the Pine Cove mine in Canada, where Anaconda Mining
also has operations.
"The time is long overdue for the parties to seek a
friendly outcome -- but it takes two to tango," Anaconda
Chairman John McBride said in a statement on Tuesday.
With Anaconda Mining's latest offer, set to expire on Aug.
31, each New Island shareholder would get 0.42 Anaconda shares
for each New Island share they held and would continue to
retain their New Island shares.
The deal would fetch Anaconda Mining New Island's interest
in the Pine Cove mine, while New Island would remain a public
company with its other assets.
"(It) makes no sense for ownership of the relatively small
Pine Cove Gold Mine to continue to be divided between two
companies," Anaconda Mining Chief Executive Lew Lawrick said.
Anaconda Mining, which also wants two seats on New Island's
board, added that it could potentially defeat any deal New
Island struck with Mountain Lake Resources or other parties by
virtue of its stake.
Anaconda Mining's stock, which has shed about 7 percent of
its value since it first made its offer, was up about 4 percent
at 28.5 Canadian cents in midday trade Tuesday on the Toronto
Shares of New Island, which have more than doubled in the
past three months, were flat at 11.5 Canadian cents on the
Toronto Venture Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by