Deal: Cobalt 27 Capital Corp (Cobalt 27) has been advised on a takeover by scheme of arrangement of Highlands Pacific Limited (Highlands) and its financing.
Value: $130 million
Key players: The team at Piper Alderman was led by partner Mark Williamson, and included partners Sina Kassra and Mark Gordon, as well as senior associate Christopher Lyons and lawyers Egor Serov and Sam Blight.
Deal significance: Cobalt 27 is a Toronto-based battery minerals company. It invests in minerals that are integral to key technologies of the electric vehicles and battery energy storage markets.
Cobalt 27 was Highlands’ largest shareholder and this arrangement has seen Cobalt 27 acquire the remaining Highlands shares for an all-cash offer price of $0.105 per share. A further $0.01 per share is payable under the scheme if the price of nickel exceeds an agreed threshold before 31 December 2019, according to a statement from Piper Alderman.
“Parallel with the scheme, Cobalt 27 is on-selling the Frieda River Asset (an asset of Highlands Pacific) to PanAust,” the firm noted.
The acquisition of Highlands by Cobalt 27 increases the latter's exposure to the Ramu nickel-cobalt mine in Papua New Guinea – “creating a leading high-growth, diversified battery metals streaming and royalty company”.
Commenting further on the deal Piper Alderman partner Mark Williamson said: “This transaction involved numerous complex and novel issues. The challenges came thick and fast, but we are very pleased to have been able to overcome those challenges through fantastic teamwork and innovative thinking”.
“We are delighted to have assisted Cobalt 27 in completing this deal that will see them become an even more significant player in the battery minerals market.”