Allens, together with alliance partner Linklaters, has advised Rio Tinto on its joint venture agreement with First Quantum Minerals Limited for the development of the La Granja copper project in Peru, one of the largest undeveloped copper deposits in the world.
Under the proposed transaction, which is expected to complete in the third quarter of this year, First Quantum will acquire a 55 per cent stake in the La Granja project for US$105 million. It will also commit to further invest up to US$546 million into the joint venture to sole fund capital and operational costs to take the project through a feasibility study and toward development. On completion of the sole funding commitment, all subsequent expenditures will be applied by the parties on a pro-rata basis according to their ownership shares in the project.
'We are very pleased to have assisted Rio Tinto in this transaction, together with Linklaters,' said lead partner Richard Malcolmson.
'We are proud of our longstanding relationship with Rio Tinto, and are excited to have helped it agree a partnership with First Quantum to progress the development of La Granja.
'As the energy transition gathers pace, the world's demand for copper is expected to accelerate. We congratulate Rio Tinto and First Quantum on reaching agreement to work together to develop this potentially significant copper project.'
Allens and Linklaters legal teams
Allens
Richard Malcolmson (lead Partner), Harry Beardall (Managing Associate), Georgie Leahy (Senior Associate), Julie Litver (Lawyer)
Linklaters
Lisa Chang (Partner), James Inglis (Partner), Meila Burgess (Managing Associate), Benjamin Marchand (Associate)