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Multimillion-dollar gold development project forges ahead
The construction of a Western Australian gold project located 750km northeast of Perth will kick off this year with the successful execution of a debt financing package for the development.
Melissa Coade
Firms: Herbert Smith Freehills (lenders); Wright Legal (Dacian Gold Ltd)
Value: A$150 million
Area: Finance
Key players: The HSF team advising the lenders on the deal was led by partners Andrew McLean (pictured) and Rowen Cross. Senior associate Nicolas Hemelaar and solicitor Rachael Le Tessier assisted.
Deal significance:
First production of Dacian Gold’s Mt Morgan project has been scheduled for the March 2018 quarter and construction, worth A$220 million, is due to commence in 2017.
Building of the project site, located 750km outside of Perth, has been made possible with a $150 million debt financing package. Transaction lenders for the deal included ANZ, BNP Paribas and Westpac.
HSF partner Rowen Cross, who jointly led advice for the lenders, said the deal involved an extensive due diligence process across construction, native title and land access issues.
“Our expertise on key issues ensured a thorough due diligence process which helped the lenders get comfortable with the deal in a very compressed timetable,” Mr Cross said.
“We were delighted to advise ANZ, BNP Paribas and Westpac on this debt financing package and ensure a successful outcome for all three lenders and Dacian Gold.”
HSF partner Andrew McLean added that the project signals renewed optimism in the state’s mining sector.
“After a significant downturn, this project is one of a number of recent positive signs that the WA resources sector is recovering,” Mr McLean said.
