Allens has advised Hillgrove Resources Limited on the refinancing of its debt, bonding and hedging facilities for the Kanmantoo copper mine operation, comprising a US$14 million Pre-Export Facility loan (plus a further US$6 million tranche subject to conditions), a deferral and extension of the existing price participation obligations under the offtake agreement, a A$20 million Performance Bond Facility and associated commodity hedging facilities.
Allens also advised Hillgrove on a fully underwritten non-renounceable rights issue, which is expected to raise A$10 million in connection with the refinancing.
The deal has seen Hillgrove secure the Pre-Export Facility with Ventures Australia LLC, a subsidiary of Freepoint Commodities LLC (also the long-term off-taker for the Kanmantoo project), which is the first such loan by Freepoint in the local market.
Macquarie Bank Limited has provided the Performance Bonding Facility, which will be used primarily for the environmental bonds necessary to support the Kanmantoo operation, and also provided all the initial commodity hedging.
Partner Nicholas Adkins led the Allens Banking & Finance team on the debt refinancing, assisted by Senior Overseas Practitioner Sarah Glenn, Associate Gabriela Wilson, Associate Tom Tian and Law Graduate Melanie Hayden. Equity Capital Markets Partner Julian Donnan and Associate Shikha Sethi advised on the equity raising.
'We are very pleased to have assisted Hillgrove with this complex and innovative refinancing and to have continued our long association with the company,' Nick said.
'We expect it will position the company well to realise the maximum value from the Kanmantoo operation.
'The refinancing comprised funds from a variety of sources, each with its own unique features, and it was undertaken at what is obviously a challenging time in the resources cycle, so full credit to the team at Hillgrove for getting this over the line.'
Allens legal team
Nicholas Adkins (Partner – Banking and Finance), Julian Donnan (Partner – Equity Capital Markets), Adrian Chek (Partner – Tax), Sarah Glenn (Senior Overseas Practitioner – Banking and Finance), Gabriela Wilson (Associate – Banking and Finance), Tom Tian (Associate – Tax), Shikha Sethi (Associate – M&A) and Melanie Hayden (Law Graduate – Banking and Finance).
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.