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25 July 20232 minute read

DLA Piper advises on USD150 million financing package

DLA Piper advises on USD150 million financing package

DLA Piper advised global mining financier Sprott Resource Lending Corp. on a funding package compromised of a USD135 million mezzanine loan note facility and USD15 million equity investment.

This package formed part of the circa USD1.1 billion consideration payable by Metals Acquisition Corp for the acquisition of the CSA Copper Mine from Glencore. The mine is located in Cobar, New South Wales, Australia.

“This was a highly complex cross-border transaction which contributed to the acquisition by Metals Acquisition Corp of the CSA Copper Mine, being one of the first mining SPAC deals to complete globally,” said Owen Alcorn, Partner, DLA Piper.

Metals Acquisition Corp is a NYSE-listed Special Purpose Acquisition Company with a focus on green-economy metals and mining businesses in stable jurisdictions.

"The copper produced will be used in a wide range of products and is critical for a low carbon energy future,” Owen said.

DLA Piper advised Sprott on the debt and equity investments alongside a deep pool of other secured creditors – including senior commercial banks, a silver streamer, a copper streamer and royalty holder.

The DLA Piper cross-border deal team was led by Perth-based Owen Alcorn (Partner, Finance, Projects & Restructuring) and Vancouver-based Douglas Shields (Partner, Finance, Projects & Restructuring). Owen and Douglas were supported by Alex Jones (Partner and Global Co-Chair of Energy and Natural Resources, Perth), Matthew Watkins (Partner, Corporate, Perth), Oliver Wright (Partner, Finance, Projects & Restructuring, New York), Caroline Rowe (Special Counsel, Melbourne), Sharon Carey (Senior Associate, Perth), Madina Eira (Solicitor, Perth), Hugo Michea-Palmer (Graduate, Perth), Gianni Rifici (Paralegal, Perth) and Jason Duryea (Paralegal, Perth). DLA Piper was assisted by Appleby for Jersey and Cayman law matters.

DLA Piper has advised on a range of matters across the energy and infrastructure sectors in support of Australia's push towards net zero. The firm has been ranked #1 Global Renewable Energy Legal Adviser by Inspiratia and #1 Law firm in ESG performance by Impactvise.

"We brought together a team from Perth, Vancouver and New York to secure funding for one of Australia’s premier copper ore deposits. We were delighted to assist Sprott in reaching financial close on this matter,” Owen added.