15/09/2008 - 12:45

Anvil's $272m placement called off

15/09/2008 - 12:45

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Anvil Mining Ltd will look at other possible transactions after a $272 million private placement by Israel's Catala Global is called off due to continued deterioration in market conditions.

Anvil's $272m placement called off

Anvil Mining Ltd will look at other possible transactions after a $272 million private placement by Israel's Catala Global is called off due to continued deterioration in market conditions.

In an announcement today, Anvil advised shareholders that a meeting scheduled to approve the downgraded $C237 ($A272 million) placement will not go ahead.

Last month, Anvil lowered the price of the placement from $C296 million to $C237 million.

Catala originally agreed to subscribe for just under 24 million shares priced at $C12.50 each which would have given the company, linked to Israeli mining investor Dan Gertler, a 25 per cent Anvil stake.

"Due to continued deterioration in market conditions for resource companies, the private placement will not proceed at this time," Anvil said today in a statement.

"Discussions are ongoing with Catala."

Anvil said it has appointed BMO Capital Markets as its financial advisers to look at other possible transactions, however stressed that there is no assurance that any other deals will eventuate.

Since the announcement of the private placement in July, shares in Osborne Park-based Anvil have fallen from around $12 per share to the last traded price of $7.20 at 14:41 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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