Anvil shares down as Congo review delivered

06/11/2007 - 11:32

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The share price of West Perth-based Anvil Mining Ltd closed down 11.3 per cent as a review by the government of the Democratic Republic of Congo into the nation's 61 mining contracts is due to be handed to the country's mines minister today.

Anvil shares down as Congo review delivered

The share price of West Perth-based Anvil Mining Ltd closed down 11.3 per cent as a review by the government of the Democratic Republic of Congo into the nation's 61 mining contracts is due to be handed to the country's mines minister today.

Anvil operates the flagship Dikulushi copper-silver mine, approving a $258.5 million expansion of the project in April, as well as two others, the Kinsevere and Kulu mines.

In an announcement to the Australian Securities Exchange released this morning, Anvil said it had not yet received any communication from either the minister or any member of the department about renegotiating or terminating any agreement between the company or any of its subsidiaries and the government.

Anvil shares closed at $16.41, after closing at $21 on Friday.

 

 

The full text of the company announcement is pasted below

Montréal, Canada: Anvil Mining Limited (TSX, ASX: AVM) ("Anvil" or the "Company") responded today to news reports that the Commission appointed to review mining contracts in the Democratic Republic of the Congo ("DRC") and which reports to the Minister of Mines in the DRC, has recommended that 61 of those contracts be renegotiated or terminated. The recommendations appear to relate to almost all of the companies which hold
mining rights in the country without regard to the timing or basis upon which they were negotiated. News reports have stated that the Commission will recommend the termination of Anvil's contractual rights to the Dikulushi copper-silver mine as well as the rights to 23 other contracts held by other companies. In addition, news reports have stated that Anvil's joint venture in respect of the Mutoshi property (which includes the Kulu Mine) and lease
agreement with respect to the Kinsevere-Nambulwa property (which includes the Kinsevere Mine) have been recommended for renegotiation along with another 35 contracts held by other companies.

Anvil confirmed that it has received no written communication from the Minister of Mines or the Commission (or any other government body in the DRC) in respect of renegotiation or termination of any agreement to which Anvil or any of its subsidiaries is a party. Anvil understands that the Commission is to report to the Minister of Mines and that the
Commission is mandated to issue recommendations only and does not appear to have the power itself to renegotiate or terminate any contract. Accordingly, Anvil can offer no comment on whether any of its contractual arrangements in the DRC will actually be terminated or renegotiated. Nor can it comment on the terms of any such renegotiation or termination.

Anvil is an unhedged copper and silver producer whose shares are listed for trading on the Toronto Stock Exchange (as common shares) and the Australian Stock 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 DRC.

 

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