Doubts hang over Anvil acquisition as Minmetals extends offer

Finance

Publishing Date: 09 Jan 2012 4:07pm GMT
Author: Mining Journal

Hong Kong-based Minmetals Resources Ltd (MMR) has extended its C$1.3 billion (US$1.27 billion) purchase offer for Anvil Mining Ltd to February 16, after parties to the deal failed to reach agreement.

The offer was announced on September 29, 2011, and was due to expire on January 11. In statements released by Anvil and Minmetals, the companies noted that no agreement had between reached in consultations with two Congolese stakeholders: the state-owned La Générale des Carrières et des Mines Sarl, known as Gécamines, and the privately-owned Mining Company Katanga SPRL (MCK).

Each of the Congo-based companies have argued that their prior approval is required before Minmetals can acquire Anvil, which shares ownership of the Kinsevere and Mutoshi copper projects in the Democratic Republic of the Congo (DRC). The requirement for prior approval is disputed by Anvil.

Anvil said “There can be no assurance that the parties will reach agreement on revised commercial arrangements with Gécamines or any agreement with MCK relating to its demands and allegations, in both cases on terms satisfactory to MMR. Consequently, there can be no assurance that MMR will consummate the offer.”