Cominco says in talks with Anvil
TORONTO, Nov 12 (Reuters) - Canada's Cominco Ltd [AMEX:CLT - news] said on Wednesday that it
was in talks to provide further financing to Anvil Range Mining Corp and its Faro lead/zinc operation in
Yukon, Canada.
''There are discussions going on between Cominco and Anvil Range regarding further financing, but no
definitive agreement has been reached as of yet,'' a Cominco spokesman told Reuters.
Earlier this year, Toronto-based Anvil Range received approvals for a C$15 million loan from 27.7 percent
owner from Cominco of Vancouver.
The mining operation, located at Faro, Yukon, was temporarily shut down last December due to lower
than expected base metal prices and a strong Canadian dollar.
Anvil Range has been trying to raise C$25 million to finance mill modifications and restart operations at
Faro.
Anvil Range officials were unavailable for comment on Wednesday, but some analysts suggested the
current depressed market is making it difficult to raise cash.
''Obviously they've hit into a tough market. The zinc market is down and stock prices are ugly,'' one
Canadian mining analyst said on Wednesday.
The Faro mine and mill is one of the world's largest zinc and lead concentrate producers. In the 14
months ended December 31, 1996, Faro produced 345,700 tonnes of zinc concentrates and 186,000
tonnes of lead concentrates. |
