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Herbert Geer acts on Kentor Gold $65m deal
Law firm Herbert Geer has advised Kentor Gold Ltd on its $65 million capital raising.
The New Lawyer
LAW firm Herbert Geer has advised Kentor Gold Ltd on its $65 million capital raising.
The capital raising included a placement of shares to sophisticated and professional investors and a pro rata rights issue to shareholders. The placement was significantly oversubscribed and keenly sought by investors in Australia, Asia and Europe. The placement and rights issue was undertaken shortly after Kentor’s board announced its decision to proceed with the full scale development of the Andash Gold-Copper Project (Andash Project) in the Kyrgyz Republic in which Kentor has an 80 per cent interest. The high grade, low cost Andash Project is scheduled to commence production in early 2012. Production is currently expected to average 70,000 ounces of gold and 7,400 tonnes of copper per annum for an initial six years, with exploration results at several nearby deposits and prospects presenting potential opportunities to expand and extend the life of the operation. Funds raised by the capital raising will complement the US$50 million debt financing which Macquarie Bank Limited has been mandated to provide. Lead Herbert Geer partner on the deal was Michael Truelove. He was assisted by solicitor Hugh Brolsma. The other advisors on the deal were the Joint Lead Managers to the deal (Helmsec Global Capital Limited and RBS Morgans Corporate Limited) and Middletons, represented by partner Russell Lyons and special counsel Jillian McGregor.
