Firm: DLA Piper
Deal: Gemstone 101 Ltd, a wholly owned subsidiary of Valuestone Global Resource Fund, has been advised on its investment into CuDeco Limited.
Value: $22 million
Key players: The legal team advising Valuestone Global Resource Fund was led by DLA Piper Hong Kong partner Gloria Lui, with assistance from counsel Sue Yang.
The team was also assisted by DLA Piper Perth partners Marc Wilshaw and Scott Gibson, with assistance from solicitor Jonathan Foo.
Deal significance: This investment was completed in the form of convertible notes and options.
According to a statement from DLA Piper, the notes are convertible into 44 million ordinary fully paid shares in CuDeco limited, with 4,400,000 additional free options being granted to Valuestone Fund.
Proceeds will be used to make loan repayments to the China Minsheng Banking Corporation, which will provide CuDeco with a more robust long-term capital structure. The agreement is subject to standard conditions precedent for a transaction of this nature, according to the firm.
CuDeco is described as an ASX-listed mining company that specialises in mineral exploration and is currently transitioning to a major producer of mineral concentrates.
The company primarily specialises in activities such as mineral exploration, evaluation, mine development and construction of the plant and other infrastructure related to the Rocklands Copper Project based in Cloncurry, Queensland, Australia. Its projects also include Morris Creek and Camelvale projects.
Meanwhile, Valuestone Fund is a private equity fund sponsored by Jiangxi Copper and China Construction Bank International. It is focused on investment in mining and natural resources companies, and provides CuDeco with new strategic relationships to bring significant benefits to the Rocklands Project, including future potential markets for CuDeco's products, said the statement from DLA Piper.