NEWS

Allens advises on innovative $35m facility for gold producer

Allens has advised Commonwealth Bank of Australia (CBA), National Australia Bank Limited (NAB) and BNP Paribas (BNP) on a Syndicated Facility Agreement (SFA) to provide working capital and bank guarantee facilities to Ramelius Resources Ltd (Ramelius). Under the SFA, CBA, BNP and NAB will provide facilities totalling $35 million plus an extensive hedge portfolio.

The facility will provide Ramelius with access to working capital and support for any corporate or asset acquisition it might conduct in the future. There is also scope to increase funding, subject to the approval of the syndicate members.

In addition to its current gold-producing operations, Ramelius has exploration projects ongoing in Western Australia and Nevada, USA.

'We were delighted to advise the banks on this landmark facility for WA gold producer, Ramelius. Having access to up to $35 million will support the company's growth aspiration and the exploration projects that are currently underway,' said lead Partner Nicholas Creed.

'More than a year in the making, Allens and the banks structured the deal in a new, innovative way, to incorporate a substantial hedging book. It's one of the first to deal with complicated intercreditor issues that arise when an existing financier has large exposure to gold hedging and the incoming syndicate members do not,' he said.

Allens legal team

Banking & Finance

Nicholas Creed (Partner), John Tanner (Senior Associate), Elize Conway (Associate) and Andrew Huxtable (Lawyer).

Projects

Jodi Reinmuth (Partner).

Ends

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.