Montreal, Canada — MININGREVIEW.COM — 23 January 2009 – Anvil Mining Limited – leading copper producer in the Democratic Republic of Congo (DRC) – has reached agreement with the government of the Democratic Republic of Congo (DRC) and government mining company Gécamines on the terms of its two major projects in the Central African country.
A new release issued here confirmed that Anvil was in possession of an amendment agreement for the Kinsevere lease agreement, signed by itself and Gécamines. In addition, the company had been formally notified by Gécamines and the DRC government that the Dikulushi mining convention remained unchanged.
Anvil president and CEO Bill Turner commented: “We are satisfied with the outcome and believe that the amended agreement for Kinsevere provides a solid base from which to further develop this project and to move forward with our partner, Gécamines. Importantly, finalisation of the agreement enables us to proceed with funding for the Stage II expansion of our flagship project at Kinsevere – a significant, high-grade copper resource with potential to increase in size.”
Gécamines managing director Paul Fortin said: “This should now clear the way for Anvil to proceed with its Stage II development of Kinsevere. Anvil has been one of the pioneers in the DRC copperbelt, and we are keen to see our projects develop to their full potential with the help of this company.”
The Kinsevere mine is located in the Katanga Province in the south-east of the DRC, about 30 km north of the provincial capital, Lubumbashi. The mineral rights are held by Gécamines. AMCK Mining SPRL – a special purpose joint venture company between Anvil (95%) and Mining Company Katanga SPRL (5%), a local, privately owned Congolese company – which has a lease agreement with Gécamines to mine and process ore from the Kinsevere mine until 2024, followed by an automatic 15 year extension.
As far as Dikilushi is concerned, Anvil, through its 90%-owned subsidiary Anvil Mining Congo SARL, is guaranteed sole and exclusive rights for exploitation of the area governed by the convention, for a minimum period of 20 years from the date of the issue of the tenure. The remaining 10% of the equity in the Dikulushi mine is held in trust by the company for the economic, social and infrastructure development of the Dikulushi region.