Toronto, Canada — MININGREVIEW.COM — 11 August 2009 – Anvil Mining Limited “’ a leading copper producer in the Democratic Republic of Congo “’ has announced that independent commodities trading company Trafigura Beheer BV has agreed to provide US$200 million (R1.6 billion) in equity and debt financing to fund the construction of a copper mine in the Central African country.
In a statement released here, the company said that with about half the capital cost at the Kinsevere Stage II project in the DRC already incurred, the new finance package would enable it to start commissioning the project in late 2010, and to begin commercial production in 2011.
The news sent Anvil shares up 16.8% or 40 Canadian cents to C$2.78 on the Toronto Stock Exchange.
“We view this as positive, as Kinsevere is now fully funded to production, and it removes a key risk for the company,” said RBC analyst Cailey Barker in a note to clients.
“The financing deal will give Trafigura a 36% stake in Anvil, with the option to increase its holding to 39%,” the company statement added. Anvil is listed on the Australian Stock Exchange and Toronto Stock Exchange, and is focused on projects in the DRC.
Anvil’s Kinsevere Stage I project is currently in operation, and it has two projects that have been put on care-and-maintenance, due to a collapse in the price of copper.
The Kinsevere Stage II project is expected to produce 60 000 tonnes of copper a year.
Anvil and Trafigura have also entered into a life-of-mine off-take agreement related to the sale of all products from the Kinsevere mine, and an agreement regarding the provision of technical services during the construction and commissioning of Kinsevere Stage II.