DLA Piper, HSF act on billion-dollar mining acquisition

by |

DLA Piper and Herbert Smith Freehills (HSF) have advised in a major deal for the Australian gold industry.

DLA Piper advised ASX-listed Saracen Mineral on its $1.1bn acquisition of a half stake in Kalgoorlie Consolidated Gold Mines (KCGM) joint venture from Barrick Gold, which was counselled by HSF. DLA Piper also advised on Saracen’s $796m equity raising.

Michael Bowen, one of the Perth-based lead partners for DLA Piper, said that the acquisition makes strategic sense for Saracen. It will position the company as one of Australia’s major gold producers, he said.

Bowen jointly led the team with partners Alex Jones and Rhys Davies. They were supported by special counsel Hedley Roost, Joanne Steer, and Roger Hawkins, as well as senior associate Cameron Bill.

HSF’s deal team was led by partner Tony Damian and Clayton James. They were supported by senior associates Li-Lian Yeo, David Rowan, Jen Harding, Charlotte Cameron, and Laura Walsh, as well as solicitors John McQueen and Alex Thams.

The KGCM joint venture owns and operates the Super Pit Gold Mine in Kalgoorlie-Boulder in Western Australia, about 600km east of Perth. Funds for the deal came from a combination of debt and equity.

DLA Piper said that Saracen’s financial advisers were Goldman Sachs and RBC Capital Markets.

DLA Piper most recently helped Suncorp in its divestment of its Capital S.M.A.R.T. Repairs Australia business for $420m. In the mining and resources sector, DLA Piper most recently helped form in July the new cross-border partnership between MOD Resources and Sandfire Resources NL.

HSF previously advised Barrick Gold on its divestment of its Cowal gold mine in New South Wales, as well as the sale of a 50% stake in Barrick (Niugini), the 95% owner and manager of the Porgera Joint Venture gold mine in Papua New Guinea.