Anaconda Mining said it has forged a “friendly” deal with gold explorer New Island Resources to acquire its interest in Pine Cove mine.

Under the agreement, New Island will continue as a public company and retain its Glover Island property and all of its remaining assets.

In a joint-statement, the companies said, about 22.6 million Anaconda shares will be distributed at an exchange ratio of 0.42-0.45 Anaconda share per New Island share.

The deal will help Anaconda to gain control of the Pine Cove mine in Baie Verte, Newfoundland.

Anaconda already holds a 41% stake in New Island, which holds gold and base metal properties in Newfoundland and Labrador.