Signing of Mutoshi Joint Venture Amended Agreement and Update on Kinsevere Stage IIadmin
Anvil Mining Limited, announced that it had completed an agreement with La Générale des Carrières et des Mines (“Gécamines”) and the Government of the Democratic Republic of Congo (“DRC”) on the terms of its Mutoshi Joint Venture (“JV”) agreement.
The Company is also pleased to announce that it has recommenced the engineering and design work for the Kinsevere Stage II copper project located approximately 30 km north of Lubumbashi, the provincial capital of the Katanga Province in the DRC. At the time the Company suspended the development of Kinsevere Stage II in November 2008, the engineering and design work was approximately 80% complete.
Bill Turner, President and CEO of Anvil, commented, “The conclusion of the Mustoshi JV amended agreement effectively ends the DRC Government’s review of our mining agreements that commenced in mid-2007. We look forward to working with Gécamines to further evaluate and develop the potential of the Mutoshi properties. Today’s announcement means that the future development of Mutoshi can be carried out under a structure that not only delivers value to our shareholders but also to Gécamines and the Kolwezi community more generally.”
The Company has significant exploration interests at Mutoshi and during 2008 completed a scope drilling program, the purpose of which was to outline sufficient near-surface oxide copper and cobalt mineralization to justify development of the Mutoshi Stage II Solvent Extraction – Electrowinning (“SX-EW”) plant. While significant further infill drilling and metallurgical testwork are required, the results of the scope drilling program have enabled a grade-tonnage model to be created which has allowed for the development of preliminary mine planning and notional mining schedules for feed to a possible Stage II SX-EW plant.
Status of Kinsevere Stage II – restart of the engineering and design work
During the fourth quarter of 2008, the Company placed the remaining engineering design, fabrication, construction works and procurement for the Kinsevere Stage II 60,000 tpa SX-EW development on hold pending the securing of additional funding. Construction of the plant is almost 50% complete.
The Company has engaged Ausenco Limited to recommence work on Kinsevere Stage II in order to complete the well-advanced engineering and design work relating mainly to electrical, piping and instrumentation, which is expected to take three months to complete. Auscenco has been involved with Anvil since the commencement of Kinsevere Stage II in 2007, and approximately 80% of the engineering and design work has been completed. The Company remains well-positioned to recommence development of Kinsevere Stage II when the Company obtains the necessary funding.
Payment of Kinsevere Pas de Porte
As part of the Kinsevere amended agreement reached in January 2009 with Gécamines and the DRC Government, the Company paid this week to Gécamines the first tranche of the Pas de Porte of $10 million, less an amount of $2.2 million due to Anvil by Gécamines with respect to past purchases of copper concentrates by Gécamines. The second tranche of the Pas de Porte payment of $5 million is due to be paid in January 2010.
Anvil Mining Limited is an unhedged 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.