PERTH (miningweekly.com) – ASX- and TSX-listed Anvil Mining has cleared the way for a takeover by Minmetals Resources, after gaining Minmetals shareholder approval and reaching an agreement with its Democratic Republic of Congo (DRC) stakeholder.

Minmetals was offering C$8 a share for Anvil, valuing the miner at around C$1.3-billion. The offer was set to expire on February 16, unless extended.

Anvil reported on Monday that it had reached an agreement with DRC-based La Génerale des Carriers et des Mines (Gécamines) on the terms of a revised commercial agreement, which include the acknowledgement and welcome of a change of control of Anvil, which would result from the completion of the takeover offer.

In October, Gécamines, which holds the mineral lease for the Kinsevere project, advised Anvil that the financial terms of the lease agreement could be reviewed after the Minmetals takeover.

Anvil maintained that the company’s ownership had no effect on the Kinsevere licence, and that there was no legal requirement for Gécamines’ approval.

Anvil has agreed to pay $55-million as part of the restructuring of its commercial agreements with Gécamines, covering both the Kinsevere and Mutoshi projects. Anvil would also pay a tonnage-based cash payment for new copper reserves discovered at Kinsevere.

The miner also reported that mining company Katanga, which owns a 5% stake in the Kinsevere project, has welcomed the acquisition of Anvil by Minmetals, and has agreed to suspend the potential claims it had previously raised, for a period of six months, to allow Minmetals to integrate Anvil into its business.
 

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