Anvil raises funds to expand Congo mine
Copper and silver producer Anvil Mining Ltd says it is confident it will complete a $C237 million ($A267.8 million) placement next month to support the expansion of its Kinsevere mine in the Democratic Republic of Congo (DRC).
Anvil president Bill Turner told the Paydirt Africa Down Under Conference in Perth on Thursday that the placement proceeds also would provide a solid cash position for the company's other expansion plans in the west African nation.
Anvil shareholders will vote on the proposed placement, which is exclusive to Anvil's new private investor, Israel's Catala Global, on October 16.
"This placement, to our new private investor, Catala Global Ltd, will see Catala emerge with a 25 per cent shareholding in Anvil in a strategic partnership," Mr Turner said.
"Catala will have one board seat out of six.
"This move substantially strengthens Anvil's balance sheet to a cash position of $US420 million ($A502.9 million) and with no debt.
"This gives the company a considerably enhanced capacity for growth."
Mr Turner said he was confident the placement would be approved by shareholders.
Anvil's primary listing is on Canada's Toronto Stock Exchange. The company also is listed on the Australian stock exchange.
Anvil operates three mines in the DRC's southeast - Dikulushi, Kinsevere and Mutoshi - and produced 47,000 tonnes of copper and 2.5 million ounces of silver in calendar 2007.
The company has been constructing a $US380 million ($A455.5 million) solvent extraction/electrowinning (SX-EW) plant at Kinsevere since July last year, which will increase annual production at the mine to 60,000 tonnes of SX-EW copper.
The placement proceeds will allow the company to complete this expansion, with commissioning scheduled for the end of next year, and proceed with a second SX-EW development based on its Kolwezi copper tailings mining operations, also in the south-east region.
Anvil reported last month that the rate of underground development at its Dikulushi mine was not proceeding as well as hoped.
"We have initiated a revised mining plan for the Stage III underground at Dikulushi and expect to have the mine back on track by early next year with target annual production of 11,000 tonnes of copper and 950,000 ounces of silver," Mr Turner said.
Anvil has set an annual copper production target of 100,000 tonnes from 2011.
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