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Gadens strikes gold for Metminco
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Gadens strikes gold for Metminco

Gadens Lawyers recently advised ASX and AIM-listed mining exploration company Metminco Limited (Metminco) on three material transactions designed to strengthen Metminco's asset base.Under the…

Gadens Lawyers recently advised ASX and AIM-listed mining exploration company Metminco Limited (Metminco) on three material transactions designed to strengthen Metminco's asset base.

Under the first agreement with Barrick Gold Corporation (advised by Clayton Utz), Barrick has surrendered it's 'buy back right' in connection with Metminco's Los Calatos copper-molybdenum project in southern Peru in exchange for Metminco issuing to Barrick a total of 75 million fully paid ordinary shares in Metminco.

The transaction will see Barrick hold approximately 5.1 per cent of the issued capital of Metminco.

Gadens also advised Metminco on the purchase of 50 per cent of SCM Ovalle from MN Ingenieros Limitada (MN) resulting in SCM Ovalle becoming a wholly owned subsidiary of Metminco. This transaction gives Metminco 100 per cent ownership of the following Chilean assets: the Mollacas copper leach project, the Vallecillo Au-Zn project and the Loica Cu-Mo deposit.

The consideration of $US35 million was satisfied by the issue to MN of 70,250,855 new fully paid ordinary shares in Metminco, and the payment of $US10 million in cash. The cash component of the purchase price for SCM Ovalle was fully funded by the simultaneous placement of Metminco shares primarily to selected institutional investors in Australia, Asia, Chile and the United Kingdom to raise $30.4 million ($7.6 million by issue of 20 million new fully paid shares in the company at an issue price of $0.38 per share; and $22.8 million by issue of 60 million shares at $0.38 per share, subject to shareholder approval at the company's Annual General Meeting to be held 30 May 2011).

Energy and Resources partner Kym Livesley led the Gadens team, assisted by solicitor Sally Weatherstone.

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