We present the results of observations from the IRAM array of the submm galaxy SMMJ16359+6612 lying at z=2.516 behind the massive cluster A2218. The foreground gravitational lens produces 3 images with a total mag. of 45 of this faint submm galaxy, which has an intrinsic submm flux of f_850mic=0.8mJy placing it below the confusion limit of blank-field surveys. The substantial magnification provides a rare opportunity to probe the nature of a distant sub-mJy submm-selected galaxy, part of the population which produces the bulk of the submm cosmic far-infrared background. Our observations detect the CO(3-2) line in all 3 images, as well as the CO(7-6) line and the dust continuum at 1.3mm for the brightest image. The CO(3-2) velocity profile displays a double-peak profile which is well fit by two Gaussians with FWHM of 220km/s and separated by 280km/s. We estimate the dynamical mass of the system to be ~1.5 10^10 M_sun and an H2 gas mass of 2.6 10^9 M_sun. We identify a spatial offset of ~1\'\' between the two CO(3-2) velocity components, modeling of which indicates that the offset corresponds to just ~3kpc in projection at z=2.5. The spatial and velocity properties of these two components are closely related to features detected in previously published Halpha spectroscopy. We conclude that this source is likely to be a compact merger of 2 fairly typical Ly-break galaxies with a maximal separation between the two nuclei of ~3kpc. This system is much less luminous and massive than other high-z submm galaxies studied to date, but it bears a close similarity to similarly luminous, dusty starburst resulting from lower-mass mergers in the local Universe.