Minmetal Resources offers $1.3 billion for Anvil Mining

Minmetal Resources (HKG:1208) is buying Anvil Mining (TSE:AVM) for $1.3 billion, representing a 30% premium over the company’s average share price.

Anvil’s board has unanimously approved the offer.

Anvil’s key asset is the Kinsevere mine, located in the Democratic Republic of Congo. As a result of the acquisition, Minmetal says its annual copper output will grow by 60,000 tonnes per year, an increase of 60%. The Kinsevere mine is expected to have about a 14 year life.

“MMR’s aim is to build an international mining group based on a unique operating model that brings together the skills and experience of an international management team with the long term commitment of a major Chinese corporation as its major shareholder,” said Andrew Michelmore, CEO and Executive Director of Minmetal Resources.

“We believe this acquisition, which will expand MMR’s global footprint and add a pure copper play to our diversified portfolio, will propel us further along that path.”

Minmetal is seeking approval from the Australian Foreign Investment Review Board for the acquisition. Investment Canada is not expected to review the transaction.

BNP Paribas is acting as financial advisor to Minmetal Resources.