Anvil Mining Limited and Catala Global Limited announce definitive Subscription Agreement for private placement



    
    TSX, ASX: AVM
    Common Shares outstanding 71.2 million
    

    MONTREAL, Aug. 24 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM) ("Anvil"
or the "Company") and Catala Global Limited ("Catala") announced today that
they have entered into a definitive Subscription Agreement for a private
placement. Due to the significant deterioration in market conditions for
resource companies since the original announcement of the placement on
July 10, 2008, the subscription price per share has been reduced from C$12.50
to C$10.00 per share (with a corresponding reduction in the gross proceeds).
The issue price of C$10.00 represents a premium of 39% to the closing price of
C$7.21 for Anvil's Common Shares on the Toronto Stock Exchange on August 22,
2008.
    The private placement consists of 23,733,970 Common Shares of Anvil to be
issued at a price of C$10.00 per share to Catala for gross proceeds of
approximately C$237 million. A copy of the Subscription Agreement will be
filed with the Canadian securities regulatory authorities and will be
available as a material contract under Anvil's profile at www.sedar.com.
    The proceeds from the private placement will be used by Anvil for
completion of Kinsevere Stage II, Kulu Stage II SX-EW and studies leading to
the development of an expanded SX-EW facility at Kolwezi (combining resources
at Kulu and Mutoshi) and for general working capital purposes.
    The private placement is subject to satisfaction of a number of
conditions, including regulatory approval and the approval of Anvil's
shareholders. A special meeting of Anvil's shareholders to approve this
transaction is expected to be held during September, 2008. The exact date will
be determined shortly and will be the subject of a further announcement by
Anvil. Anvil's Board of Directors is recommending that shareholders vote in
favour of the transaction.
    In connection with the private placement, BMO Capital Markets has
delivered to Anvil's Board of Directors a written fairness opinion dated
August 24, 2008 to the effect that, based upon and subject to the matters set
out in the opinion, the consideration to be received by Anvil pursuant to the
private placement is fair, from a financial point of view, to Anvil.
    Upon completion of the transaction, Catala will own approximately 25% of
the outstanding shares of Anvil. Catala, the ultimate owner of which is a
trust for the benefit of family members of Dan Gertler, is entering into the
transaction for investment purposes and may acquire or otherwise trade in
shares of Anvil from time to time. The Subscription Agreement continues to
provide Catala with a right to participate in future issuances of shares or
convertible securities so as to maintain its pro rata position, and Catala's
percentage shareholding at which this right applies has been changed from 20%
to 15%. Catala also has the right to have one representative nominated for
election as a director, so long as Catala owns at least 10% of Anvil's Common
Shares. At closing, Anvil and Catala will also enter into an investor rights
agreement providing Catala with the right to have the shares of Anvil owned by
it qualified for distribution by way of prospectus in Canada under certain
conditions.
    Anvil Mining Limited is an unhedged copper and silver producer, the
shares of which are listed for trading on the Toronto Stock Exchange (as
Common Shares) and the Australian Securities Exchange (as CDIs) under the
symbol AVM. It has majority interests in and operates the Dikulushi
copper-silver mine, the Kinsevere copper mine, and the Mutoshi Stage I copper
tailings operation in the Katanga Province of the Democratic Republic of
Congo.

    Caution Regarding Forward-Looking Statements: The forward-looking
statements made in this news release are based on management's assumptions and
judgments regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to completion of
the private placement with Catala Global Limited, involve known and unknown
risks, uncertainties and other factors which may cause the Company's actual
results, performance or achievements to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. There can be no assurance that the private
placement will be completed.
    As a consequence of the letters Anvil received in February 2008 from the
Minister of Mines of the Democratic Republic of Congo ("DRC"), Anvil expects
to be required to enter into discussions or negotiations with the DRC
Government and Gécamines regarding its rights with respect to its properties
in the DRC. No assurance can be given as to the outcome of any such
discussions or negotiations or that Anvil's security of tenure and its ability
to secure additional financing in the future may not be adversely affected so
as to have a material adverse effect on its business, operating results and
financial position.

    %SEDAR: 00020549E




For further information:

For further information: On behalf of Anvil Mining Limited: Craig Munro,
Senior Vice President Corporate & CFO, Tel: +61 (8) 9481 4700, Email:
craigm@anvilmining.com (Perth); Robert La Vallière, Vice President Investor
Relations, Tel: (Office) (514) 448-6664, (Cell) (514) 944-9036, Email:
robertl@anvilmining.com (Montréal); Website: www.anvilmining.com; On behalf of
Catala Global Limited: James White, Alex Brod, Weber Shandwick, Tel: +44(0)207
067 0000

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