CORRS Chambers Westgarth is advising Sichuan Hanlong (Group) Co. Ltd [Hanlong] on a Subscription Agreement it has entered into with Moly Mines Limited.
Under the agreement Hanlong will provide Moly Mines Limited with US$200 million in equity and debt funding and commits to providing or arranging US$500 million debt funding for the 10 million tonne per annum Spinifex Ridge Molybdenum/Cooper project.
The funding will allow Moly Mines to clear its existing debt and represents a major opportunity for Hanlong to further expand its presence internationally.
Lead partner on the transaction for Corrs, Anthony Latimer, said the firm feels privileged to be working with Hanlong on such a strategically important transaction for the company.
“This transaction represents a great opportunity for Hanlong to further expand its international operations. It will also have a deep impact on the Western Australian mining industry. We look forward to working with Hanlong to achieve the vision they have for Moly Mines.”
This is the most recent in a series of high profile matters involving Chinese investors and operators on which Corrs has advised. Corrs has advised Yanzhou Coal on its proposed acquisition of Felix Resources, Baosteel on its strategic cooperation with Aquila Resources and MCC as its Australian counsel in respect of the Shanghai bourse component of its recent dual IPO in Hong Kong and Shanghai.
Corrs has also previously advised Moly Mines in respect of its Spinifex Project.
The Corrs lead team for the transaction includes Anthony Latimer, Jon Cane, Sophie Chen, Alan Churley and Beverly Kennedy.