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TSX, ASX: AVM
Common shares outstanding 117.6 million
MONTREAL, Dec. 14 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil" or the "Company") is pleased to announce that at the special meeting of shareholders held on December 11, 2009, the Anvil shareholders approved the US$200 million debt and equity financing transaction with Trafigura Beheer B.V. ("Trafigura") which was originally announced on August 10, 2009. As part of the resolution passed at the meeting, Anvil's shareholders approved the second tranche of a US$100 million private placement to Trafigura, a loan agreement among Anvil, certain of its subsidiaries and Trafigura providing for a US$100 million total commitment by Trafigura, and certain additional agreements among Anvil, certain of its subsidiaries and Trafigura.
51,089,570 shares, representing 43.44% of the total number of issued and outstanding Anvil common shares were represented in person or by proxy at the meeting, and votes on the transaction resolution were cast by a show of hands. Of the 50,913,085 votes cast by proxy, representing 43.29% of the total number of issued and outstanding Anvil common shares, 50,841,385 (99.86%) votes were in favour and 71,700 (0.14%) votes were against. In accordance with the requirements of the TSX, 15,644,293 shares issued to Trafigura in the first tranche of the equity financing were excluded from voting.
Anvil anticipates that the second tranche of the US$100 million equity financing approved by the Anvil shareholders will close on December 15, 2009 and that the additional agreements, consisting of a Loan Agreement, an Offtake Agreement for copper produced at Kinsevere, an Ancillary Rights Agreement providing Trafigura with certain ongoing rights and a Technical Services Agreement relating to the development of Kinsevere Stage II, will also come into effect at that time.
In addition to the equity financing, on December 15, 2009 Trafigura will make available to the Company a loan facility with a total commitment of US$100 million, which will be available for drawdown only after funds from the equity financing have been utilised.
Anvil Mining Limited is a copper producer, whose shares are listed for trading on the Toronto Stock Exchange (as Common Shares) and the Australian Securities Exchange (as CDIs) under the symbol AVM.
Caution Concerning Forward-Looking Information:
This news release contains "forward-looking information" regarding the anticipated completion of the equity and loan transactions described above. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Assumptions upon which such forward looking information is based include that Anvil and Trafigura will be able to satisfy the conditions to closing of the equity financing and the conditions to availability of the loan facility, including obtaining all third party and governmental approvals, including approvals of Anvil's joint venture partner, Gécamines, the Central Bank of Congo and applicable departments of the government of the Democratic Republic of the Congo and that all other conditions to each transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Anvil or Trafigura and there is no assurance they will prove to be correct. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to mining operations, including political risks and instability, and risks related to international operations, actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled "Risk Factors" in the Company's annual information form, which is available under the Company's profile on SEDAR at www.sedar.com. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.
SOURCE Anvil Mining Limited
For further information: For further information: Craig Munro, Senior Vice President Corporate & CFO, +61 (8) 9481-4700, firstname.lastname@example.org (Perth); Robert La Vallière, Vice President Corporate Affairs, (514) 448-6664, (Cell) (514) 944-9036, email@example.com (Montréal); www.anvilmining.com