Acquisition of majority stake in a gold mine project
Acquisition of a majority stake on a gold mine project
Transaction Details
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Company Name
Gold mining company
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Category
Mining industry
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Date
2016
The company was looking for a mezzanine financing solution and the client performed a Due Diligence on the project, revealing good market chances in the near future. A solid IRR expectation was calculated and decision to invest made. ESG and compliance aspects have been integrated in the term sheet and SPA, mitigating repetitional risks.
Impressions
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Challenge
Due Diligence of a mining project in Sub-Saharan Africa
- country risks
- technical due diligence
- financial due diligence
Closing
Successful transaction based on increasing gold prices and state of the art risk and compliance monitoring. IRR over the expectation.
Suggestions?
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