another extension of the offer and production

Extension of Offer Period for Takeover Bid and Update on Discussions with DRC Stakeholders
9 January 2012
Source:Dow Jones Global Press Release Wire

TSX, ASX: AVM Common shares outstanding 158 Million

All amounts are expressed in US dollars, unless otherwise stated.

PERTH, Australia, Jan. 9, 2012 /CNW Telbec/ - Anvil Mining Limited (TSX: AVM) (ASX: AVM) ("Anvil" or the "Company"). Reference is made to the offer by MMG Malachite Limited (the "Offeror"), a wholly owned indirect subsidiary of Minmetals Resources Limited ("MMR"), to purchase all of the Common Shares of Anvil on a fully-diluted basis (including those Common Shares that are subject to CHESS Depository Interests) at a purchase price of C$8.00 per share in cash (the "Offer").

The Offeror has now extended the expiry time of the Offer, from 8:00 pm (Toronto time) on January 11, 2012, to 8:00 p.m. (Toronto time) on February 16, 2012, unless the Offer is further extended or withdrawn. By virtue of this extension, the "CDI Expiry Time" as defined in the Offer and Offer documents, has been automatically extended to 7:00 p.m. (Sydney time) on February 14, 2012, unless the Offer is further extended or withdrawn.

Since the initial announcement of the takeover bid on September 29, 2011, Anvil and MMR have been consulting with various stakeholders in the Democratic Republic of Congo ("DRC"). As announced on October 31, 2011, during consultations with La Generale des Carrieres et des Mines Sarl ("Gecamines"), Anvil and MMR were advised that if the takeover is completed without Gecamines' prior approval, Anvil's local DRC subsidiaries would be in breach of the terms of the lease of the mineral tenure for the Kinsevere Project and the terms of the joint venture agreement in respect of the Mutoshi Project. There can be no assurance that the parties will reach agreement on the terms of revised commercial arrangements with Gecamines. The approval of MMR would be required in order for Anvil to implement revised arrangements with Gecamines.

The Kinsevere Project is held as to 95% by a wholly-owned Congolese subsidiary of Anvil, which in turn holds a lease from Gecamines of the underlying mineral tenures. The remaining 5% interest in the Kinsevere Project is held by a private Congolese company, Mining Company Katanga SPRL ("MCK"). During the course of the ongoing discussions with Gecamines, Anvil and MMR have been advised by MCK that its prior approval of the takeover bid is required. MCK has also made allegations to the effect that its rights under the shareholders' agreement governing the Kinsevere Project have not been respected by Anvil.

Anvil's position is that there is no legal requirement for the approval of either Gecamines' or MCK under any of its contractual documentation with either entity in connection with the proposed change of control and that Anvil has fully complied with its contractual obligations. As previously disclosed, there will be a requirement to give Gecamines a right of pre-emption in connection with the Mutoshi Project, which MMR and Anvil are fully aware of and intend to comply with. MMR and Anvil have previously agreed that Anvil's 70% interest in the Mutoshi Project has a value of US$52.5 million.

Discussions with each of Gecamines and MCK by Anvil and its advisors and with MMR are ongoing. There can be no assurance that the parties will reach agreement on revised commercial arrangements with Gecamines or any agreement with MCK relating to its demands and allegations, in both cases on terms satisfactory to MMR. Consequently, there can be no assurance that MMR will consummate the Offer.

AVM Anvil's copper production at 29,000 tonnes for 2011

9 January 2012
Source: Canada Stockwatch

Monday January 09 2012 - News Release

Mr. Darryll Castle reports

ANVIL MINING REPORTS ON PRODUCTION RAMP-UP AT KINSEVERE MINE

Anvil Mining Ltd.'s total annual copper production for 2011, including copper in concentrate and cathode, will be approximately 29,000 tonnes. All figures are shown in U.S. dollars, unless otherwise specified. This is marginally below the previous guidance (30,000 to 31,000 tonnes) provided by the company last November. Technical difficulties experienced with the plant's electrowinning transformers, particularly in the fourth quarter of 2011, account for the above variation and are expected to also result in the ramp-up to full production occurring at the end of the first quarter of 2012 rather than the previous target date of December, 2011.

Commenting, Anvil president and chief executive officer Darryll Castle said: "Despite the technical difficulties we've experienced during the buildup of production at Kinsevere, I'm pleased with the progress we have made during 2011. The current efficiency in the tank-house is now close to design specifications and further improvements are expected in January and February as planned equipment improvements are implemented. These achievements have helped to mitigate some of the short-term technical difficulties we've experienced."

The Kinsevere plant's electrowinning tank-house was commissioned earlier in 2011 with four installed transformers and one on-site spare. From the start of commissioning and during the plant's ramp-up in 2011 continuing technical difficulties were experienced with these transformers. Power interruptions in the Democratic Republic of Congo, particularly during December, 2011, further affected the production buildup.

Kinsevere is currently operating on 2.5 of its four required transformers. In order to resolve the technical difficulties and mitigate production risk, the company is working with specialist consultants and contractors to repair failed transformers where possible, and procure new units of a higher specification and improved design. A recently refurbished transformer has been operating without incident and the company commenced a process in the third quarter which will result in the replacement of all the transformers. Due to the lead time to acquire replacements, the company expects the process will be completed toward the end of the first quarter 2012, when it plans to have in operation four new transformers in addition to the two standby units which are currently operational and which will be held as backup.