Osborne Park-based Anvil Mining Ltd is set to raise $310 million from a share placement to Israeli mining investor Dan Gertler who, on completion of the raising, will hold 25 per cent of the company.
Osborne Park-based Anvil Mining Ltd is set to raise $310 million from a share placement to Israeli mining investor Dan Gertler who, on completion of the raising, will hold 25 per cent of the company.
Anvil, which is also listed on the Toronto stock market, said it will issue just under 24 million shares at $C12.50 ($A12.90) each to Catala Global Ltd, which is owned by a trust linked to family members of Mr Gertler.
Proceeds from the placement, which is subject to regulatory and shareholder approval, will be used to complete the development of stage two of Anvil's Kinsevere copper project
Proceeds from the placement will be used to complete expansion plans at Anvil's Kinsevere copper project and the Kulu tailings operation and fund studies into an expanded plant at Kolwezi, all in the Democratic Republic of Congo.
The placement is subject to regulatory and shareholder approval.
Below is the announcement:
Anvil Mining Limited (TSX, ASX: AVM) ("Anvil" or the "Company") is pleased to announce that it has entered into a binding term sheet for a private placement of 23,733,970 Common Shares at a price of C$12.50 per share for C$296,674,625, with Catala Global Limited ("Catala"), whose ultimate owner is a trust for the benefit of family members of Dan Gertler. The subscription price represents a premium of approximately 27% to the 30-day volumeweighted average price of the Common Shares of Anvil on the Toronto Stock Exchange (the "TSX") as of closing of trading on July 9, 2008.
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 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. The Board of Directors of Anvil has provisionally determined to call a special meeting of Anvil's shareholders to approve this transaction, to be held September 15, 2008.
Completion of the placement will result in Catala owning approximately 25% of the outstanding Common Shares of Anvil on an undiluted basis and after giving effect to the placement. Upon completion of the placement, Catala will be entitled to nominate one person to Anvil's Board of Directors. So long as Catala or its affiliates continue to hold at least 20% of Anvil's Common Shares, Catala will have a right to participate in future issuances of shares or convertible securities so as to maintain its pro rata position, excluding issuances under Anvil's stock option plan.
BMO Capital Markets has been engaged by the Board of Directors of Anvil in connection with the transaction and the provision of a fairness opinion.
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 Kulu copper tailings operation in the Katanga Province of the Democratic Republic of Congo.
