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TSX, ASX: AVM
Common shares outstanding 117.6 million
MONTREAL, Sept. 17 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil" or the "Company") is pleased to announce that it has completed the first tranche of its previously announced private placement to Trafigura Beheer B.V. ("Trafigura").
The first tranche consists of the purchase by Trafigura of 15,644,293 equity units at a price of C$2.20 per Unit, with each Unit comprised of one Common Share of Anvil and 0.232 of one Common Share purchase warrant. Each whole Warrant entitles the holder to acquire one additional Common Share upon payment of C$2.75 (for a period of thirty months from the date of issuance of the Warrant). Giving effect to the exercise of the 3,629,476 Warrants comprised in the first tranche and Trafigura's pre-existing holdings of 4,850,800 Common Shares, Trafigura's aggregate equity interest in Anvil is now approximately 19.9%. The gross proceeds received by Anvil from Trafigura for the Units issued in the first tranche were US$31,977,248, leaving a balance of US$68,022,752 to be received upon completion of the second tranche of the private placement.
The second tranche of the private placement is to be completed following approval by the shareholders of the Company at a special meeting expected to be held in November 2009. Upon completion of the second tranche, Anvil will have received gross proceeds totalling US$100 million from Trafigura from the two tranches of the private placement. In addition to the equity financing, Trafigura has also agreed that concurrently with the completion of the second tranche of the private placement, it 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.
The proceeds of the transaction will be used to recommence construction of the Kinsevere Stage II 60,000 tonnes of copper per year Solvent Extraction - Electrowinning project located in Katanga Province in the Democratic Republic of Congo and for general working capital purposes.
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 intended use of proceeds for the offering described above. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. 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, 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, +1 (514) 448 6664, (Cell) +1 (514) 944 9036, email@example.com (Montréal); www.anvilmining.com