Mining Journal reported that Anvil Mining Limited has agreed a strategic alliance with Trafigura Beheer BV, the world's second largest independent non ferrous metals trader. The agreement includes a USD 200 million debt and equity financing arrangement.
The two tranche funding will consist of a USD 100 million equity investment and USD 100 million fully underwritten debt commitment. There is the potential for an additional USD 31.2 million in funds upon the exercise of warrants. In addition, Anvil and Trafigura will enter into a life of mine Offtakers Agreement, on arms-length terms, for the sale of all products from the Kinsevere mine.
The proceeds of the transaction will be used to recommence construction of the Kinsevere Stage II 60,000 tonnes per annum copper SX EW project in the Katanga Province of the Democratic Republic of Congo and for general working capital purposes.
On completion of the equity component of the transaction, assuming current exchange rates and no exercise of outstanding options, Trafigura will hold approximately 36% of the issued and outstanding common shares of Anvil, with an opportunity to increase its shareholding to approximately 39% on a fully diluted basis.
Mr Bill Turner CEO of Anvil said that "The involvement of Trafigura as a strategic partner will allow us rapidly to recommence construction of our flagship Kinsevere Stage II project, a significant high-grade copper resource. With approximately 50% of the Stage II capital cost already incurred, this financing package will enable us to commence commissioning of Kinsevere Stage II in late 2010 and achieve commercial production in 2011."
Mr Jeremy Weir executive director of Trafigura said that "The strategic alliance Trafigura is forming with Anvil will provide a fully financed structure, with significant technical support, to enable the company to complete the construction of the Kinsevere SX EW project and bring it into production on a timely basis. Anvil has an attractive strategic position in the Congo and our support will significantly enhance its capability to deliver on our combined, future growth objectives."
(Sourced from www.mining-journal.com)
