Clayton Utz acts on UK mine debt restructure, bridge loan

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Clayton Utz advised Wolf Minerals Limited (Wolf) on its entry into a series of agreements to support the Company’s financial strength and operations as it works towards commercial production and design performance at the Drakelands open pit mine (Drakelands).
 
Perth Corporate Advisory/M&A partner Matthew Johnson led the Clayton Utz team, together with Banking and Finance partner Rohan Mishra, senior associate Annie Atkins and special counsel Kate Casellas.
 
To continue its focus on improving the performance of the processing plant and optimising ore feed at Drakelands which is located in Devon, England, Perth-based ASX- and AIM-listed Wolf has executed a binding agreements with its existing senior lenders for a standstill and restructure of the senior debt currently outstanding.
 
Wolf has also negotiated a £20 million, twelve-month secured bridge loan with the potential for this to be increased to £30 million with Resource Capital Fund VI L.P.
 
The bridge facility will mandatorily switch to a three-year subordinated convertible loan, if certain conditions precedent are satisfied, or a three-year subordinated loan if those conditions are not satisfied.
 
Wolf will seek shareholder approval at an Extraordinary General Meeting to enable the issue of ordinary shares in accordance with the convertible loan terms under the Bridge Facility.
 

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