Firms act on gold project debt financing

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Two firms advised on a $150 million debt financing package for the development of a gold project in Western Australia.
Herbert Smith Freehills advised ANZ, BNP Paribas and Westpac which worked on the package while Wright Legal, a Perth-based boutique, advised Dacian Gold.
The Mt Morgans project, located in the Goldfields approximately 750km northeast of Perth, is due to start construction early this year. The $220 million Mt Morgans project is expected to begin first production for the first quarter of next year.
Andrew McLean and Rowen Cross led the HSF team and were supported by senior associate Nicolas Hemelaar and solicitor Rachael Le Tessier. The team advised on all aspects of the financing.
Cross noted that an extensive due-diligence process was conducted before an agreement between the lenders and Dacian Gold was reached. Lawyers across the firm provided expertise in a range of areas including construction, native title and land access.
“Our expertise on key issues ensured a thorough due diligence process which helped the lenders get comfortable with the deal in a very compressed timetable. We were delighted to advise ANZ, BNP Paribas and Westpac on this debt financing package and ensure a successful outcome for all three lenders and Dacian Gold,” Cross said.
HSF’s co-lead partner, McLean, noted that the project was a sign of renewed optimism in the WA mining sector.
“It will be fantastic to see this project begin construction and reach production stage. It’s testament to the quality of the project, as well as Dacian management and the bankers involved, that the deal was done so efficiently,” he said.
“After a significant downturn, this project is one of a number of recent positive signs that the WA resources sector is recovering,” McLean said.

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