re: Ann: Trafigura Warrant Exercise and Fundi... Morning folks.
The first of the announcements. Good news is that we are fully funded to complete Kinsevere Stage II. Sale of existing investments and the excercise of these warrants, " the Company now anticipates that it is fully funded to take Kinsevere Stage II to construction completion,commissioning and ramp up."
Kinsevere mine tour on today. Conference presentations also starting early this month.
All the best.
KKR
Trafigura Warrant Exercise and Kinsevere Stage II Funding Update
Montr?al, Canada: Anvil Mining Limited (TSX, ASX: AVM), (?Anvil? or the ?Company?),today announced that Trafigura Beheer B.V. (?Trafigura?) has exercised 6.0 million common
share purchase warrants (the ?Warrants?) for proceeds of approximately $16.5 million. After the exercise of 6.0 million Warrants and giving effect to the exercise of the 5,228,320 Warrants remaining, plus Trafigura?s existing holdings of 53,248,729 Common Shares, Trafigura?s
aggregate equity interest in Anvil on a fully diluted basis, remains at approximately 38.9%.
Pursuant to a $200 million funding arrangement agreed with Trafigura in August 2009, Trafigura was issued 11,228,320 Warrants which entitle the holder to acquire one common
share of Anvil upon payment of Cdn$2.75 per Warrant. The remaining 5,228,320 outstanding Warrants will expire on June 16, 2012. Trafigura?s exercise of the Warrants is consistent with its strategic support for the Company?s Kinsevere Stage II 60,000-tonne per year Solvent
Extraction Electrowinning (?SX-EW?) plant development (?Kinsevere Stage II?).
As previously announced, in November 2010 the Company liquidated its available-for-sale equity investment in Chalice Gold Mines Limited for proceeds of approximately $5 million and during December completed the liquidation of its available-for-sale debt investments for proceeds of approximately $25.0 million.
Together with the $100 million project loan facility (the ?Loan Facility?) provided by Trafigura, the liquidation of the available-for sale investments and Trafigura?s exercise of the Warrants, the Company now anticipates that it is fully funded to take Kinsevere Stage II to construction completion, commissioning and ramp up. Kinsevere Stage II is currently approximately 82% complete, with full commissioning expected to begin during the second
quarter of 2011.
At December 31, 2010, the Company had cash balances of $56.0 million, all of which is held on deposit with major international banks and the Loan Facility, of which $58.0 million remains undrawn. Although the development of Kinsevere Stage II is fully funded, the Company is
continuing work on refinancing the Loan Facility with a group of banks, however that
refinancing is no longer critical to the completion of Kinsevere Stage II.
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