[miningmx.com] — MINMETALS Resources said on Friday its acquisition of Anvil Mining will proceed now that the two firms have reached an agreement with minority stakeholders in the Democratic Republic of Congo.
Congo’s state-owned mining body Gecamines almost scuppered the takeover after it indicated that the proposed deal would lead to a review of the lease for Kinsevere, Anvil’s flagship asset in the DRC, and Mutoshi, a copper-cobalt project there.
Kinsevere is 95% owned by Anvil, which in turn holds a lease from Gecamines. Mutoshi is 70 percent owned by Anvil, with the remaining stake held by Gecamines.
The agreement with the DRC stakeholders confirms Anvil’s title to its assets in the country are valid and in good standing
Minmetals said Gecamines and Mining Company Katanga (MCK), which has a 5% interest in Kinsevere, have both confirmed that they acknowledge and welcome the Minmetals offer for Anvil.
Hong Kong-based Minmetals, a government-backed unit of China’s largest metals trader, said it has advised Anvil that the agreements with Gecamines and MCK are satisfactory.
The $1.3bn offer for Africa-focused Anvil was announced last September. The closing of the deal was extended more than once to allow both sides to reach a deal with the DRC-based stakeholders.
In a separate statement, Australia-based Anvil asked its shareholders to tender their holdings to Minmetals’ offer, which is set to expire on Feb. 16.
Anvil, which is also listed in Toronto, said its agreement with Gecamines includes a commercial payment to restructure certain terms of the agreements governing the Kinsevere and Mutoshi projects.
Restructuring the agreements will also include a limited right for Gecamines to audit past royalties paid to it for a period of six months, said Anvil.
It also granted Gecamines a 12-month option to buy Anvil’s interest in the Mutoshi project for $52.5m.
