Global law firm Norton Rose Fulbright has advised RK Mine Finance as senior lender on the US$275 million project financing of the Khoemacau copper and silver mine in Botswana owned by Cupric Canyon Capital.
The financing package also included a US$265m silver stream and US$25m subordinated debt from RGLD Gold AG, as well as equity investments from Global Natural Resource Investments and Resource Capital Fund VII LP. The financing package will be used for the construction of Khoemacau’s 3.6 million tonnes per annum Zone 5 project. Combined with other funding, the project now has a total funding of US$650 million. The funding package also provides for repayment of the existing US$105m RK Mine Finance Bridge Loan.
Construction for the mine started in early 2019 and is expected to be completed in 2021.
Martin McCann, Norton Rose Fulbright’s Global Head of Business and a London-based partner, who led on the deal, commented:
“We are delighted to have assisted RK and the other parties achieve close. While we have historically seen secured debt, stream and royalty combinations in North America, they are quite new to emerging markets. These combinations bring with them complexities with the intercreditor arrangements, but here all parties drew upon their significant experience to achieve close. We are working with a range of clients on projects in Latin America, North America and Africa using versions of the same structures, so these deals are here to stay.”
Along with McCann, senior associate Felicity Brown led the multi-jurisdictional Norton Rose Fulbright team, which included associates Jill Kavanagh and Claudia Dorbez in the London office. Vancouver-based partner David Bain and associate Matthew Choi advised on British Columbia law matters, and Johannesburg-based director Malibuye Cossie and associate Chloe Taylor provided advice on South Africa law matters.