http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=84462
Anvil shares soar as diamond mogul swoops on 25pc stake
12th July 2008, 13:00 WST
Israeli diamond tycoon Dan Gertler has shrugged off uncertainty surrounding the fate of a swag of mining projects in the Democratic Republic of Congo to snatch a 25 per cent stake in Osborne Park-based Anvil Mining for $C296 million ($305 million).
News that a company controlled by the powerful 35-year-old mogul, who has long-established ties to the DRC and is reputedly a friend of the Bush administration, was set to become a cornerstone investor, sent Anvil’s shares $2.94 higher to $11.94 yesterday.
In addition to the capital injection Mr Gertler’s presence as a major backer is likely to bring clout to Anvil’s negotiations with the DRC Government, which is re-evaluating the group’s mining leases as part of a widespread government review.
Under the deal announced yesterday, Catal Global, a company effectively owned by Mr Gertler through a family trust, will acquire 23.7 million shares at $C12.50 a share, or about a 27 per cent premium to the company’s previously traded share price. A Catal nominee will also take a seat on Anvil’s board.
The money will fund Anvil’s expansion of its Kinsevere copper mine and Kulu copper tailings operations in the Katanga province of the DRC, as well as providing working capital.
Anvil is banking on turning Kinsevere into its future flagship operation, where it has proven and probable reserves of one million tonnes of copper and production planned for 2010. The mine is expected to provide greater cash flow than its Kulu and current flagship Dilulushi mines combined.
The ASX and Toronto Stock Exchange-listed producer is one of the biggest copper producers in the DRC, while Mr Gertler has operated in the DRC for years through his DGI Group.
Best known for his diamond interests, Mr Gertler also has a sizeable stake in African copper miner Nikanor, along with a slew of high-profile business personalities, including Israeli diamond billionaire Beny Steinmitz.
The grandson of Moshe Schnitzer, founder of the Israeli diamond bourse, Mr Gertler has attracted headlines throughout his career, including a thwarted public play to buy one of the world’s most profitable diamond mines from BHP Billiton four years ago.
Yesterday’s developments come five months after Anvil’s ambitions were dealt a major blow when the DRC Government informed the company it was looking at cancelling its contract covering the Dilulushi mine and renegotiating those covering Kulu and Kinsevere as part of a countrywide review. Anvil has since written to the Government seeking a meeting with the Minister of Mines.
KATE EMERY
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