Firm: Clayton Utz
Deal: Wolf Minerals Limited (Wolf) has entered into a into a series of agreements to support its financial strength and operations as it works towards commercial production and design performance at the Drakelands open-pit mine in the UK.
Value: Approximately £20 million
Area: Banking and finance
Key players: Perth corporate advisory/M&A partner Matthew Johnson (pictured) led the Clayton Utz team, with assistance from banking and finance partner Rohan Mishra, senior associate Annie Atkins and special counsel Kate Casellas.
Deal significance: To continue its focus on improving the performance of the processing plant and optimising ore feed at Drakelands, Wolf has executed binding agreements with its existing senior lenders for a standstill and restructure of the senior debt currently outstanding, and Resource Capital Fund VI L.P., to provide a £20 million, 12-month secured bridge loan facility, with the potential to be increased to £30 million.
The bridge facility will mandatorily switch to a three-year subordinated convertible loan if certain conditions precedent are satisfied, or a three-year subordinated loan if those conditions are not satisfied.
Wolf will seek shareholder approval at an extraordinary general meeting to enable the issue of ordinary shares in accordance with the convertible loan terms under the bridge facility.