King & Wood Mallesons (KWM) has advised a consortium comprising specialist resources private equity sponsor, EMR Capital, and Golden Energy and Resources Limited on the acquisition of the Ravenswood Gold Mine in Queensland from Resolute Mining Limited.
Ravenswood is an existing operation with significant expansion potential to become a large scale, low cost and long life producer. The resource base includes 5.9 million ounces of gold as at 30 June 2019. The EMR GEAR Consortium has agreed to upfront consideration of A$100 million comprising A$50 million of cash, A$50 million of deferred consideration via the issue of a promissory note which attracts interest at 6% per annum, and up to A$200 million in contingent upside instruments linked to the average gold price and the investment outcomes of Ravenswood for the EMR GEAR Consortium.
Projects Partners Rebecca Finkelstein, Scott Singleton and Matthew Austin along with Senior Associates and Solicitors Lara Moreton, Aaron Beale, Candice Parer also provided support on the deal, as did Michael Lawson in KWM's Singapore office.
Commenting on the transaction, Head of Private Equity at KWM, Mark McNamara said: "We were delighted to be engaged on this landmark transaction for EMR Capital and the other investors. This acquisition will build on the strong base and precious metals portfolio EMR has established including the Capricorn and Lubambe copper mines, the Golden Grove copper/zinc/lead/precious metals mine and the Red Hill copper/gold/silver project."
Also commenting on the transaction Partner Paul Schroder said: "We're very excited to have once again helped EMR with an important multi-jurisdictional transaction. The formidable EMR team managed to put together a joint bid over the summer holiday and then successfully complete the acquisition in the middle of the COVID-19 crisis."