Sumitomo finances WA gold project
Herbert Smith Freehills has advised Japanese company Sumitomo Corporation on its farm-in and financing of a Western Australian gold mining project.
Firm: Herbert Smith Freehills (Sumitomo Corporation)
Deal: Herbert Smith Freehills has advised Japanese trading company Sumitomo Corporation on a farm-in and joint venture agreement with Novo Resources.
Value: $US30 million
Area: Mining, Resources, Commercial
Key players: HSF’s team on the deal was led by Australia Japan practice partners Ian Williams and Melissa Swain-Tonkin.
Deal significance: Sumitomo Corporation is a general trading company, listed on both TOPIX and Nikkei 225 indices.
Novo Resources is a TSX-listed company.
According to Herbert Smith Freehills, through the expenditure of up to $US30 million, Sumitomo has the right to earn up to a 40 per cent interest in Novo’s Western Australian Egina gold mining project.
The firm said Sumitomo’s financing will assist with the exploration and test extraction phases for the project.
Lead partner Mellisa Swain-Tonkin said “we are delighted to have assisted Sumitomo Corporation with its strategic investment in the Australian gold sector”.
“This deal is another example of the diversification of investments by Japanese companies in the Australian mining sector,” she said.