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Ravenswood Gold Mine acquired by a consortium of sponsors
King & Wood Mallesons (KWM) has advised a consortium of sponsors on the acquisition of the Ravenswood Gold Mine in Queensland from Resolute Mining Limited.
Tony Zhang
Firms: King and Wood Mallesons (consortium - EMR Capital and Golden Energy and Resources Limited )
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Deal: King & Wood Mallesons (KWM) has advised a consortium comprising specialist resources private equity sponsor, EMR Capital, and Golden Energy and Resources Limited on the acquisition of the Ravenswood Gold Mine in Queensland from Resolute Mining Limited.
Ravenswood is an existing operation with significant expansion potential to become a large-scale, low-cost and long-life producer.
Value: $100 million.
Area: Private equity.
Key players: The KWM team was led by partners Mark McNamara and Paul Schroder who were supported by senior associates Paul Kramer and Karim Issa, and solicitors Jack Evans and Jing Wang.
Project partners Rebecca Finkelstein, Scott Singleton and Matthew Austin along with senior associates and solicitors Lara Moreton, Aaron Beale, Candice Parer also provided support on the deal, as did Michael Lawson in KWM’s Singapore office.
Deal significance: The resource base includes 5.9 million ounces of gold as at 30 June 2019.
The EMR GEAR Consortium has agreed to upfront consideration of $100 million comprising $50 million of cash, $50 million of deferred consideration via the issue of a promissory note which attracts interest at 6 per cent per annum, and up to $200 million in contingent upside instruments linked to the average gold price and the investment outcomes of Ravenswood for the EMR GEAR Consortium.
Commenting on the transaction, head of private equity at KWM, Mr McNamara said: “We were delighted to be engaged on this landmark transaction for EMR Capital and the other investors.”
“This acquisition will build on the strong base and precious metals portfolio EMR has established including the Capricorn and Lubambe copper mines, the Golden Grove copper/zinc/lead/precious metals mine and the Red Hill copper/gold/silver project,” he said.
Also commenting on the transaction, partner Mr Schroder said: “We’re very excited to have once again helped EMR with an important multijurisdictional transaction. The formidable EMR team managed to put together a joint bid over the summer holiday and then successfully [completed] the acquisition in the middle of the COVID-19 crisis.”
