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Allens advises on A$50m financing of WA mineral sands project

14 May 2018

Allens has advised Image Resources on the A$50 million financing of its Boonanarring mineral sands project.

Image has now met conditions precedent for drawdown in the loan note subscription agreement, which saw Image raise the equivalent of A$50 million from the issue of US$ denominated senior secured loan notes to Pala Investments Limited and two entities controlled by Castlelake L.P.

The loan note subscription agreement will fully fund Image's high-grade, zircon-rich Boonanarring mineral sands project, one of the richest heavy-mineral grade, high-zircon undeveloped mineral sands projects in Australia.

Allens advised on all aspects of the financing, from initial structuring and discussions with potential financiers and their advisers, through documentation and to satisfaction of conditions precedent, as well as related equity warrants and share issuances.

'We congratulate the team at Image on achieving this significant milestone on the path to production at the Boonanarring project', said Nicholas Creed (view CV), lead Partner of Allens.

'Image and its advisers, PCF Capital and Jett Capital, as well as Pala and Castlelake, have achieved a project financing of a mineral sands project in a finance market that traditionally has struggled with the risks associated with mineral sands production, offtake and pricing.'

'We look forward to continuing our work with Image as it progresses Boonanarring during construction and into production in 2018.'

The advice builds on Allens' expertise in project finance and extensive experience in Western Australia, where the firm has been at the centre of some of the most high-profile and complex transactions.

Allens legal team Nicholas Creed (Partner), Rod Aldus (Senior Associate), Elliott Clutterbuck (Associate)

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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.