Allens has advised Triple Flag Precious Metals on the Australian law aspects of its US$440 million gold stream agreement for the Ravenswood Gold Mine, Queensland's largest gold mine.
Located near Townsville in Queensland, Ravenswood has produced more than four million ounces of gold over its operating history and is jointly owned by EMR Capital and Golden Energy and Resources.
Under the agreement, Triple Flag will make an upfront payment of US$440 million in exchange for the right to purchase a percentage of payable gold production from the mine over the life of the stream. Triple Flag will initially have the right to purchase 5.5% of payable gold production, with that percentage reducing after certain delivery thresholds are met.
The obligations and interests under the stream will be secured and registered in favour of Triple Flag following FIRB approval. Allens is also advising on the FIRB aspects of the transaction.
Partner Ben Farnsworth said the transaction highlights the increasing use of alternative financing structures in the global mining sector.
'While stream financing remains relatively uncommon in Australia, it has become an increasingly important source of capital globally for mining companies and investors alike,' he said.
'The Ravenswood transaction demonstrates how these innovative structures can support the ongoing development of high-quality mining assets while providing investors with long-term exposure to production from established operations.'
The transaction follows Allens' previous work on Triple Flag's Northparkes and Beta Hunt investments and reflects the firm's continued experience advising on alternative financing structures in the mining sector.
Allens legal team
Banking & Finance
Ben Farnsworth (Partner), Gavin Rakoczy (Partner), Louise Barbato (Senior Associate), Brittany Lawtie (Senior Associate), Madeleine Ninkov (Associate), Cristian Minale (Associate), Sharon Chen (Associate), Christy Taylor (Lawyer)
Mergers & Acquisitions and Capital Markets
Andrew Wong (Counsel)
Projects
Jodi Reinmuth (Partner), Alexander Anile (Senior Associate)
Corporate
John Hedge (Partner), Marcelina Kosmala (Senior Associate) and Samantha Salter (Lawyer)
Disputes and Investigations
Philip Blaxill (Partner)