Anvil ready to dual-list in Canada (April 05, 2004)

Seeking a broader shareholder base, Australian-listed Anvil Mining has decided to list its shares on the Toronto Stock Exchange (TSX).

Under a restructuring plan, the company will offer an initial $7 million in shares in the Canadian market, while substantial control remains in the hands of existing shareholders. Vancouver-based First Quantum Minerals (FM-T) already holds an 18.6% interest in Anvil, and the companies share two directors.

Anvil, which owns and operates the Dikulushi copper mine in the Democratic Republic of Congo, had 197 million shares outstanding at the end of 2003. At presstime, its shares were trading at A59.

Dikulushi, an open pit that came into commercial production in September 2002, produced 7,000 tonnes copper and 654,000 oz. silver, all in concentrates, in the second half of 2003. The production was derived from 154,000 tonnes of ore grading 7.12% copper and 209 grams silver per tonne. The cost of production was US$1,060 per tonne (US48.1 per lb.) after credits for byproduct silver.

Anvil turned a profit of A$4.7 million on revenue of A$19.5 million in the last half of 2003, whereas in the second half of 2002 it lost A$1.2 million on revenue of A$2.3 million.

Under the restructuring, current Australian shares will be traded for shares in the new company. After that distribution, the Canadian offering will be carried out for about $7 million. The new shares will trade on the TSX, with depositary interests (CDIs), registered with the ASX’s Clearing House Electronic Subregister System, trading in Australia.

Anvil expects its Canadian paper will be better received in the event that it tries to make acquisitions in the future, and hopes for “increased exposure to investors with an awareness and understanding of mining opportunities in Africa.” The company plans to schedule a meeting some time in May to seek shareholders’ approval for the distribution and offering.