Firms: King & Wood Mallesons (Gryphon Minerals Ltd); DLA Piper (Teranga Gold Corporation)
Deal: Teranga Gold Corporation has entered a scheme implementation agreement with Gryphon Minerals.
Value: $86 million
Key players: The KWM team advising Gryphon Minerals was led by partner Heath Lewis (pictured), with support from senior associate Caitlin Sharp.
Deal significance: Canadian-based mining company Teranga Gold has entered into a scheme implementation agreement (SIA) with Gryphon Minerals Limited (Gryphon Minerals). Gryphon Minerals is an Australian company focused on one of the largest African gold projects: Banfora in Burkina Faso.
Under the proposed SIA Teranga Gold will acquire all of the ordinary shares of Gryphon Minerals. A total equity value of approximately $86 million for Gryphon Minerals will be implied by the exchange of common shares, on a fully diluted basis.
Commenting on the deal, KWM partner Heath Lewis said the SIA was consistent with a consolidation trend in west Africa.
“It demonstrates a continuation of the consolidation trend in west Africa, where producers are seeking to add scale, project diversity and ounces through the acquisition of pre-production assets.
“Gryphon’s takeover by Teranga will mark the third deal in the region this year of this type of producer/developer transaction, following Endeavour’s acquisition of True Gold and Perseus’ acquisition of Amara Mining,” Mr Lewis said.
“We are pleased to have been able to guide our client through this company-defining deal,” he added.