Allens acts on metal prepay arrangements for Lascaux

Allens has acted for Lascaux Resource Capital Fund (LRC) on an amendment to its secured metal prepay arrangements with Salt Lake Mining Pty Ltd (SLM) in a deal which also involved the sale of LRC's shareholding in SLM.

The deal is part of a larger transaction which facilitates the acquisition by Royal Nickel Corporation (RNC) of a 67% stake in SLM, to be accomplished through a combination of an equity issuance by SLM and a series of share purchase agreements with existing shareholders.

SLM owns 100% of the Beta Hunt mine in the Kambalda mining district, which is a relatively unique mine in that it produces both nickel and gold. Under LRC's existing prepay arrangements (on which Allens also acted), LRC is entitled to a specified amount of the gold and nickel produced from the mine during the term of the prepay agreement.

'As the RNC acquisition demonstrates, M&A activity in the mid-cap mining sector – especially in Western Australia – remains relatively strong, despite low commodity prices. The transaction was a significant one for all parties concerned and it was pleasing to be able to assist Lascaux with this matter,' said Lead Partner Mark McAleer.

'The matter highlights Allens' experience in mining M&A and prepay financing and our ability to utilise our expertise in mining, M&A and financing to provide an integrated service to our clients.'

RNC's share purchase is expected to close by early March, subject to regulatory approvals, a shareholder pre-emption process and other customary closing conditions.

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