Cominco buys stake in Anvil Range

Base metal miner Cominco (CLT-T) has purchased 4.1 million shares of Anvil Range Mining (ARO-T) at $2.30 per share through a recent private placement.

Gross proceeds of $9.4 million were paid to Anvil Range.

Cominco previously held 1.6 million shares of Anvil Range, and the recent placement boosts its holding to 28%. Another major shareholder is Hyundai, with a 20% interest.

Korean-based Hyundai agreed to support Cominco’s placement in Anvil Range, rather than a rival proposal by Mineral Resources (MIC-T), a junior company headed by Clifford Frame and John Byrne.

In the Yukon, Anvil Range owns the Faro zinc-lead mine, which closed earlier this year because of low zinc prices and high mining costs. Cominco is carrying out a review of the dormant operation.