An iconic mine and associated assets are sold for $1.16bn
Allens was the legal adviser of the bank group that helped finance the acquisition of an iconic mine in Western Australia.
The group provided new and existing debt facilities to Northern Star Resources, which acquired the 50% stake of Newmont Goldcorp Australia in Kalgoorlie Consolidated Gold Mines (KGCM), as well as associated assets, for $1.16bn.
Allens said that the bank group provided a new $400m, four-year term debt facility. Existing revolving facilities were also renewed for three years and boosted to $300m by the group. The acquisition of what was once the largest open-cut gold mine in Australia was also partly funded by proceeds from an equity raising.
The Allens team was headed by banking and finance partner Ben Farnsworth, who was supported by senior associate Rod Aldus and associate Brittany Lawtie.
“Acquiring a 50% stake in the Kalgoorlie Super Pit gives Northern Star 50% ownership of one of the most significant, tier-1 gold mines in the world,” Farnsworth said.
The transaction makes KGCM a 50:50 joint venture between Northern Star and Saracen Mineral Holdings. Ashurst earlier confirmed that it advised Northern Star in the acquisition. King & Wood Mallesons advised Newmont Goldcorp.
Allens said that Wright Legal advised Northern Star on the acquisition financing for KGCM at related assets.