Norton Rose Fulbright advises Anglo American Marketing Limited (UK) and Kimura Capital LLP on strategic offtake-linked financing

Australia Press release - Business January 10, 2020

Global law firm Norton Rose Fulbright is pleased to have advised Anglo American Marketing Limited (UK), one of the world’s largest mining companies, and Kimura Capital LLP, a UK based investment manager specialising in the global commodity trade finance, on the US$45 million offtake-linked financing to Chilean mining company Minera Tres Valles SpA. 

Minera Tres Valles SpA is owned by TSX-listed Sprott Resource Holdings Inc. (70 per cent) and a Vecchiola subsidiary (30 per cent) – Vecchiola is a prominent mining services company in Chile. The Chilean copper mine was originally developed by Vale before it was acquired by the Vecchiola group, and more recently become part of Sprott’s portfolio of resource holdings. 

The deal will assist in facilitating expansion plans at Minera Tres Valles SpA’s copper mine and processing facility through the development of an underground mine and the expansion of the current open-pit mines as well as implementing new processing techniques which will enable the operation to triple its current output of copper cathodes. Offtake rights have been built into the deal granting Anglo American up to 100 per cent of copper cathode production. While the refinancing was for US$45 million, the offtake is valued in excess of US$400 million.  

A multi-jurisdictional team across Australia, Singapore, England, the United States and Canada led by Lisa Koch advised on all legal aspects of the refinancing. 

Norton Rose Fulbright partner Lisa Koch commented:

“We are delighted to have been engaged to advise on and help facilitate this complex global transaction, which has enabled Minera Tres Valles to continue to grow its copper assets as well as providing Anglo American with a strategic opportunity to also expand its copper trading capabilities.” 

“With such a diversely skilled team of lawyers globally, Norton Rose Fulbright is ideally positioned to assist in complex multijurisdictional deals such as this. We are delighted we are able to negotiate a timely finance agreement which benefits all parties involved.”       

Kimura Capital LLP’s Craig Manielle commented:

“Kimura is delighted to have concluded this transaction for Minera Tres Valles and to have collaborated on a global scale with world renowned partners. MTV is a long standing client of Kimura, and this transaction demonstrates Kimura’s vision to help our clients expand as well as aligning with Kimura’s strategy to expand its presence and relationships on a global basis. It has been a pleasure to work with such professionals across both Anglo American, Norton Rose Fulbright and both MTV and Sprott.”

The Norton Rose Fulbright project finance team was led by Lisa Koch (Sydney) and included partners Daniel Giemajner (London), Alison Babbitt (Ottawa) and Joseph Giannini (New York), as well as team members Justin Goushas, Kit Man Cheng, Shen Low and Davor Tocakovic (Sydney), Edward Anido and Melissa Young (Ottawa) and Adrienne Sebring (New York). 

A separate global Norton Rose Fulbright team advised Citi as facility and security agent, led by partner James Morris and senior associate Gareth Munnick (Sydney), with support from partners Marian Baldwin Fuerst (New York), Mike Moher (Toronto) and Farmida Bi (London).