News
Next Meridian is proud to announce our participation as lead advisor in a financing transaction
TORONTO, Dec. 10, 2019 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc. (“SRHI” or the “Company”) (TSX: SRHI) today announced that it has signed the previously announced secured prepayment facility (“Facility”) and offtake agreement (“Offtake”) to be provided to Minera Tres Valles (“MTV”) by Anglo American Marketing Limited (“AAML”) and a fund under the investment management of Kimura Capital LLP (“Kimura” and together with AAML, the “Lenders”) to be utilized for the expansion of the MTV copper project located in Chile.
Financial close and receipt of funds is expected within the next two weeks subject to customary documentation, perfection of security and other conditions.
Key Terms of the Facility and Offtake
- US$45 million in principal with a 12 month availability period
- Term of 4 years
- Interest rate of 3-month USD LIBOR plus:
- 8.00% per annum for up to 12 months depending on certain conditions
- 6.25% per annum thereafter - Repayable in 12 equal quarterly installments commencing following a 12-month grace period
- Early repayment flexibility
- Copper price participation mechanism if LME cash price monthly average is above US$6,600/mt
- The Lenders will have offtake rights to purchase up to 100% of copper cathode production at MTV with 25% at a fixed price for a 2 year term when the average 2 year forward price of copper reaches US$6,300/mt
The Facility will, in part, be used to repay MTV’s US$20 million existing debt with Kimura.
Next Meridian LLC and Three Keys Capital Advisors LLC acted as financial advisors to MTV in connection with the Facility and the Offtake.
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Next Meridian is proud to announce our participation as lead advisor in a sale transaction
TORONTO, Aug. 22, 2017 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc.
(“SRHI” or the “Corporation”) (TSX:SRHI) today announced that it has entered
into a definitive agreement to acquire 70% of the outstanding equity of S.C.
Minera Tres Valles (“MTV”) from the Vecchiola Group for an aggregate purchase
price of US$39.9 million, consisting of US$33.5 million in cash and US$6.4
million in SRHI common shares. The transaction is expected to close during the
fourth quarter of fiscal 2017 and is subject to the satisfaction of certain
customary closing conditions, including receipt of the approval of the Toronto
Stock Exchange.
Transaction Highlights:
o MTV owns 100% of the currently producing Minera Tres Valles copper mining
and refining complex located in Salamanca, Chile.
o Historical JORC-compliant Measured and Indicated Resources of 40.7 million
metric tonnes of ore at 0.81% Cu using a cut-off grade of 0.2% Cu
completed by Snowden Mining Industry Consultants ("Snowden") in May 2013.
A qualified person has not done sufficient work to classify these
historical estimates as current mineral resources or mineral reserves and
SRHI is not treating this historical estimate as current mineral
resources. See “Historical Estimates” below.
o Experienced partner in the Vecchiola Group, a premier Chilean mining
services and construction company.
o Experienced management team responsible for re-tooling operations,
designing and implementing a strategic growth plan.
o Chile has one of the world’s most stable mining regimes, is a premiere
destination for mining investment and is the world’s top copper producing
country.
o Extensive land package with exploration potential.
o Strong community support through charitable foundation and formalization
of small-scale miners.
“We are excited to announce this investment in MTV," said Steve Yuzpe, CEO of
SRHI. “We are very bullish on copper and acquiring a majority stake in a
producing asset located in a stable, investor-friendly mining jurisdiction
like Chile is completely in line with our strategy."
"The Vecchiola Group will be tremendous partners on this project and the MTV
management team are experienced operators with the ability to effectively
execute on our development plan," added Mr. Yuzpe.
MTV has begun preparing a NI 43-101 compliant technical report that will
provide a summary of its mineral resources and mineral reserves and describe
the development plan designed to grow production to reach and exceed the
nameplate capacity of the current solvent-extraction and electrowinning
infrastructure.
“Vecchiola Group is pleased to partner with such an experienced mining
investor as SRHI to bring MTV to its full operating potential,” said Guido
Vecchiola, eldest of the Vecchiola brothers, who speaks in representation of
his brothers.
“We look forward to working with the team at SRHI to continue the development
of MTV and execute on our growth plan,” said MTV CEO, Luis Vega.
“After evaluating more than 70 investment opportunities, we concluded that MTV
offered the greatest potential to create immediate value for our
shareholders,” concluded Mr. Yuzpe. “After giving effect to this transaction,
we still have approximately $35 million in cash available to deploy towards
other accretive investments, while also continuing to monetize non-core
investments.”
Bofill Mir & Álvarez Jana acted as legal counsel to SRHI. Next Meridian LLC
and Three Keys Capital Advisors LLC acted as financial advisors to Vecchiola
Group and Nassar, Delgado & Fainé Abogados acted as legal counsel.