K&L Gates advises Sumatra in $45m financing deal
Wednesday, November 5 2014 - 01:07 AM WIB
Global law firm K&L Gates said Tuesday it has advised ASX-listed Sumatra Copper & Gold plc (Sumatra) and its Indonesian subsidiary PT Dwinad Nusa Sejahtera (Dwinad) in the recent US$45 million financing agreement for the latter?s Tembang gold project in Sumatra with Nomura Singapore Limited (Nomura) and Indonesia Eximbank.
Although primarily a financing, the transaction involved an issue of warrants by Sumatra to Nomura and a requirement to raise an additional amount of equity at the listed parent (Sumatra) level within six months, as well as substantial shareholder support from Sumatra's principal shareholders, K&L Gates said in a statement.
The loan facility will result in the hedging of up to 65 percent of Sumatra's future precious metal production. All the required resolutions were passed at a shareholders meeting on 27 October 2014, it added.
The K&L Gates team advising Sumatra was led by Perth energy, infrastructure and resources special counsel Chris Scott. "We have a team of lawyers across Asia Pacific who have decades of experience advising Indonesian companies and clients doing business in Indonesia,? he said.
Editing by Reiner Simanjuntak