Press Release Source: Anvil Mining LimitedAnvil Obtains a US$15...

Press Release Source: Anvil Mining Limited

Anvil Obtains a US$15 million Facility from Fortis Bank and a C$6 million Facility from Deans Knight
Wednesday December 21, 9:30 am ET

TSX, ASX: AVM Common shares outstanding: 29.1 million
PERTH, Australia, Dec. 21 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM - News News) is pleased to announce that it has accepted a two-year US$15 million secured facility from Fortis Bank which will be used to repay the existing RMB Resources Limited (RMB) facility of US$6.9 million as well as completing the Kulu project development and paying the balance of the acquisition cost of the Mutoshi project, both of which are located in the Katanga Province of the Democratic Republic of Congo (DRC).

This Fortis Bank facility will be a structured finance facility rather than the specific project facilities that have been put in place previously. The terms of the new loan are also more competitive than the project financing used to develop the Dikulushi HMS operation in 2002 and its subsequent expansion last year to 20,000 tonnes of contained copper and 1.6 million ounces of silver per annum.

In addition to the Fortis Bank secured facility, the Company has obtained an eighteen-month unsecured loan of C$6 million from its major shareholder Deans Knight Capital Management Ltd. Anvil will issue 600,000 two year warrants with an exercise price of C$6.25 per share to Deans Knight as part of the fee for providing the loan.

"We are very pleased to have the support of both the Fortis Group and the Company's major shareholder, Deans Knight in endorsing Anvil's growth strategy," President and CEO Bill Turner said. "We would also like to acknowledge and thank RMB for the very strong and continuing support they provided to Anvil during its formative years when the initial development of the Dikulushi Mine was undertaken and during the subsequent expansion in 2004."

Additional Notes:

Caution Regarding Forward Looking Statements: The forward looking statements made in this news release are based on assumptions and judgments of the management regarding future events and results. Such forward-looking statements include, but are not limited to those with respect to future development of the Kulu copper and Kinsevere copper-cobalt deposits, the future operation of the Dikulushi Mine, 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 forecast results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of copper, and silver, results of current exploration, development, processing plant commissioning and mining activities, changes in project parameters and plans, changes in the political environment in the countries in which the Company operates, as well as those factors disclosed in the Company's filed documents.

For further information

please contact: Bill Turner, President & CEO, Tel: +61-8-9481 4700, Email: [email protected] (Perth), Company Web site: www.anvil.com.au
Craig Munro, Vice President Corporate & Finance, Tel: +61-8-9481 4700, Email: [email protected] (Perth)
Robert La Vallière, Vice President Investor Relations, Tel: Office (514) 448-6664, Cell (514) 944-9036, Email: [email protected]


Source: Anvil Mining Limited


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