Anvil Mining has entered into a $200m debt and equity financing arrangement with non-ferrous trader Trafigura Beheer for its Kinsevere copper project in the Democratic Republic of Congo.
Under the agreement, Anvil will receive a $200m funding package from Trafigura for the completion of Kinsevere Stage II project consisting of a $100m equity investment and $100m fully underwritten debt commitment.
The involvement of Trafigura will allow Anvil to restart the construction of the company’s flagship project, which is a significant high-grade copper resource, Anvil president and CEO 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,” Turner said.
On completing the transaction, Trafigura will hold about 36% of the issued and outstanding common shares of Anvil, which can be increased up to 39%.
The project is expected to produce 60,000t a year of Grade A copper cathode, Anvil said.
The companies have also entered into an offtake agreement for the sale of the mine’s products, a technical service and ancillary rights agreements, Anvil said.