re: more of mutoshi

Been nicely uptrending.
This might help it along - though lately all the decent anns seem to be getting slugged!!


FOR IMMEDIATE RELEASE TSX, ASX: AVM
November 9, 2006 Common shares outstanding 56.7 million*
All amounts are expressed in US dollars, unless otherwise stated.
Anvil Finalizes Agreement to Acquire
an Additional 10% in the Mutoshi Copper-Cobalt Joint Venture
Montréal, Canada: Anvil Mining Limited (TSX, ASX: AVM) (“Anvil”) is pleased to announce that it has finalised an agreement for the acquisition of an additional 10% interest in the Mutoshi Copper-Cobalt Project (“Mutoshi”) located in the Kolwezi Region of the Democratic Republic of Congo (“DRC”). The additional interest is being acquired through the purchase of the remaining 12.5% interest in Emiko s.p.r.l. (“Emiko”) not held by Anvil. Emiko holds an 80% interest in the Mutoshi project through its investment in SMK s.p.r.l. with La Générale des Carrières et des Mines (“Gécamines”) holding the remaining 20%. Completion of this acquisition will take Anvil’s interest in the joint venture from 70% to 80%.
The cash consideration to be paid by Anvil is $6.6 million after netting off costs relating to the development of the Kulu mine and in connection with the assumption by Anvil of responsibility for payment of an arbitration award settlement involving SMK and the EMIKO shareholder, plus settling the final payments due under the original purchase agreement and payment of a share of the profits earned up to the date of settlement. The preliminary estimate of the value to be attributed to the additional 10% interest in Mutoshi is $10.0 million.
The Mutoshi leases host the Kulu tailings operation which the Company brought into production in December 2005 at a capital cost of $7.5 million and which was funded entirely from cash reserves. Although the average resource grade for the Kulu coar$e rejects/tailings deposit is 4.4% copper, the grade of the material mined so far from the higher-grade, upper part of the deposit has averaged around 8% copper since commissioning. The Kulu tailings operation is currently producing a copper oxide concentrate grading approximately 28% copper, and this is sold to local smelters where it is converted into “black copper” ingots assaying 90-95% copper. The Kulu tailings operation is producing at above design capacity and is expected to produce well above the previously forecast estimate of 16,500 tonnes of contained copper for 2006.
A drilling program was recently commenced on the Nioka Mining Lease (25 km2) located approximately 10 kilometres to the west of Kulu, on the southern margin of the Kolwezi Klippe.
Anvil Mining Limited 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 owns and operates the Dikulushi copper-silver mine and the Kulu coar$e rejects/tailings operation in Katanga Province of the DRC. In addition, the Company is currently
developing the Kinsevere copper-cobalt project which will be the Company’s third mine development in the DRC.
* One common share on the Canadian share register is equivalent to 10 CDIs (CHESS Depositary Instruments) on the Australian share register.
For further information, please contact:
Craig Munro Robert La Vallière
Vice President Corporate & Finance Vice President Investor Relations
Tel: +61 (8) 9481 4700 Tel: (Office) +1 (514) 448 6664, (Cell) +1 (514) 944 9036
Email: [email protected] (Perth) Email: [email protected] (Montréal)
Website: www.anvilmining.com
Additional Notes:
Caution Regarding Forward Looking Statements: The forward-looking statements made in this news release are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to estimated future production at the Kulu tailings operation and the development of a mine at the Kinsevere copper-cobalt project involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper and cobalt, the actual results of current exploration, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s filed documents.
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