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Allens advises Hillgrove on Kanmantoo fund raising

3 November 2010

Allens Arthur Robinson (Allens) has advised Hillgrove Resources Limited, owner of South Australia's Kanmantoo copper and gold mine, on the critical finalisation of an investment funding package.

Allens' involvement relates to the resources company's recent decision to secure project finance for the Kanmantoo Copper/Gold Project, including an A$30 million project loan and A$20 million in bonding and guarantee facilities. Hillgrove will also seek associated commodity hedging facilities for the project and a fully underwritten A$65 million institutional placement, including a conditional placement that is subject to shareholder approval.

Partner Andrew Finch, who led the Allens Equity Capital Markets team, said the new package is intended to cover the costs needed to complete the Kanmantoo Project.

'Achieving success in raising capital and securing a commitment for debt finance and commodity hedging is an important milestone for Hillgrove,' Mr Finch said.

'The final investment decision for the Kanmantoo project will see Hillgrove move into a new phase as an emerging copper and gold producer.'

Phillip Cornwell, the Allens Partner in charge of the project finance and hedging aspects, said the interconditionality of the equity raising, the commodity hedging and the project finance facilities presented particular challenges, and required a well co-ordinated team approach.

Ends

Allens legal team Andrew Finch (Partner – Sydney), Phillip Cornwell (Partner – Sydney), Robert Speed (Senior Associate – Sydney), Nicholas Adkins (Senior Associate – Sydney), Eve Regnard (Senior Associate – Sydney), Tom Payten (Lawyer – Sydney), Kirsty Moore (Lawyer – Sydney), Rola Lin (Law Graduate – Sydney) and Andrew Ta (Law Graduate – Sydney)

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Notes for editors..

Allens Arthur Robinson has staff in 14 cities and eight countries across the Asia Pacific.