Since 2000, CF&Co has advised on over 150 mandated transactions in over 50 countries.
Advice may cover only one aspect of mining finance, such as securing project debt, or the development and implementation of the entire financing plan for a new project. The client may be a single asset junior miner developing its first project, or a much larger company with a portfolio of assets in different stages of development.
Following is a sample of transactions that show the breadth of CF&Co advice across the various facets of mining finance. It covers a period of huge transition – including dramatic changes to funding sources, especially since 2008, and the rise of Chinese companies as major players in the industry.
Advice on debt for the original $150m development debt for the Copler gold project in Turkey and subsequent $250m of senior debt, increased to $350m, to fund a major expansion. The key issue was the constrained international debt market for Turkish ventures.
Advice on developing and implementing the overall $210m debt and equity financing plan for the Bel Air bauxite project in Guinea. Funding was procured from Private Equity and shadow bank sources.
Advice on $275m senior debt, $265m silver stream and £25m subordinated debt for development of the Khoemacau copper-silver project in Botswana. The key issues was minimising the new equity requirement.
Advice on developing and implementing the $200m debt and associated hedging strategy for development of the Haile gold project in USA, in a manner which did not compromise corporate options (Romarco was taken over as the financing completed).
Advice on developing and implementing a financing plan which enabled Dynatec to fully finance the $2.2bn (original capex) Ambatovy Nickel Project in Madagascar, remaining the largest (40%) shareholder and operator. The solution was a joint venture with Sumitomo Corps, Kores and SNC Lavelin, which provided financial support to Dynatec by way of counter completion guarantees and subordinated debt and procured import agency finance from JBIC and Korea EXIM.
Advice on resolution of a complex issue arising under the joint venture for the Ramu River nickel project in Papua New Guinea between Highlands Pacific and MCC, a Chinese State-Owned Enterprise.
Advice to the IFC on its ultimate exit from the politically sensitive Konkola Copper Mines joint venture in Zambia with Anglo American.
Advice to Turquoise Hill Ltd regarding its position in the financing for the $6bn Oyu Tolgoi project in Mongolia procured substantially by TRQ’s major shareholder, Rio Tinto Ltd.
Advice on developing and implementing the corporate debt financing strategy to transition the company from initial project development Bloom Lake iron ore project in Quebec to $290m corporate funding consistent with preparing to expand production.
Advice on developing and implementing a $975m corporate funding strategy, involving high yield public debt and a syndicated bank facility and complex intercreditor arrangements to finance a 5-year funding requirement.
Advice on a trade finance facility for OK Tedi Mining Ltd to fund potential extreme inventory funding needs, and to ensure liquidity permitting BHP to exit its investment, transferring ownership to Papuan investors.
Advice on the $1.3bn sale of Exxon Mobil’s Disputada copper assets in Chile on a substantially ‘as-is, where is’ basis to Anglo American.
Advice assistance on the acquisitions of Silmet As, a private rare earth process in Estonia, and NeoMaterials Technologies Inc, a C$1.2bn Canadian listed company with speciality metal operations especially in China space operations.
Advice to Norsemont on its sale to Hudbay Minerals Inc following a review of company’s strategic options for developing its Constancia project in Peru.
Advice on sale of 50% investment in Coal Valley Partnership in Canada to its partner, having run a process to procure maximum value for OTPP.
Advice in the acquisition of OJVG and the associated $135m funding strategy involving a stream and corporate debt.
Aquisitions & Disposals
Advice to all the joint venture partners at Ambotovy on restructuring the joint venture arrangements and shareholder loans or capital costs increased. The revised arrangements allowed development to proceed.
Advice on restructuring US$100m of senior secured, project debt at Mineral Park copper molybdenum mine in USA. The restructuring gave Mercator time to try to improve operating performance during a period of low metal prices.
Advice on re-financing R2.5bn of corporate debt and securing additional debt to support new underground mining plan.
Advice on financing options on its 50% owned Selwyn lead-zinc project in Canada to project partner Chihong Zinc and Germanium Co.
Initial advice on securing Chinese private equity to participate as 20% minority shareholders in Eldorado’s Eastern Dragon Mine in China and then in selling all Eldorado’s Chinese mining investments for approximately $1bn in aggregate to China National Gold Corporation and Yintai Resources.
Corporate Finance: advice on developing and implementing strategies to deleverage its US$600m debt, consummating in capital injection by its second largest shareholder to become the only mining financial company listed on HKEX
Advice on acquisition of strategic equity interest in AIM listed Ridge Mining Plc., and negotiation of associated Relationship Agreement.