11/08/2009 - 09:41

Anvil Mining soars on $238m deal

11/08/2009 - 09:41

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Shares in Anvil Mining have jumped as much as 20 per cent today after the miner secured a $238 million equity and debt arrangement for the expansion of its Kinsevere copper operation.

Anvil Mining soars on $238m deal

Shares in Anvil Mining have jumped as much as 20 per cent today after the miner secured a $238 million equity and debt arrangement for the expansion of its Kinsevere copper operation.

Anvil's share price rose from yesterday's close of $2.55 to a high of $3.05, before closing at $3.02 today.

Late yesterday, Anvil announced it had reached a $US200 million ($A238 million) combined debt and equity financing agreement with international commodities trader Trafigura Beheer B.V.

The agreement comprises a $US100 million equity investment through a private placement of shares and a $US100 million fully underwritten debt commitment.

Additionally, both companies reached agreement on terms covering offtake, technical services and ancillary rights arrangements.

"The involvement of Trafigura as a strategic partner will allow us to rapidly recommence construction of our flagship Kinsevere Stage II project, a significant high-grade copper resource," Anvil chief executive Bill Turner said.

"With approximately 50% of the Stage II capital cost already incurred, this financing package will enable us to commence commissioning of Kinsevere Stage II in late 2010 and achieve commercial production in 2011."

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