August 10, 2009 / 11:12 AM / 9 years ago

UPDATE 1-Anvil to get $200 mln financing for Congo mine

* Deal to fast-track Kinsevere Stage II project

* Says Trafigura to purchase $100 mln in Anvil shares

* Says Trafigura to provide loan facility of $100 mln

Aug 10 (Reuters) - Anvil Mining Ltd AVM.TO AVM.AX said it agreed with independent commodities trading company Trafigura Beheer B.V. for a combined debt and equity financing of $200 million to fund construction at a copper mine in the Democratic Republic of Congo.

Anvil said, as part of the deal, Trafigura will buy $100 million of Anvil’s equity units in a private placement.

Each unit will be priced at C$2.20 — a 7.6 percent discount to Anvil’s close Friday on the Toronto Stock Exchange — and will consist of one common Anvil share and warrant to buy 0.232 common share.

Each whole warrant will entitle the holder to buy one common share of Anvil upon payment of C$2.75, for a period of 30 months from their date of issue, Anvil said in a statement.

Trafigura will also make available a loan facility with a total commitment of $100 million at an annual interest of LIBOR plus 4 percent, plus the cost of political risk insurance, Anvil said.

The company said with about 50 percent of the capital cost at the Kinsevere Stage II project in Congo already incurred, the financing package will enable it to start commissioning the project in late 2010 and begin commercial production in 2011.

Shares of the company closed at C$2.38 Friday on the Toronto Stock Exchange, while they closed at A$2.55 on the Australian Securities Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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