Newcrest’s Acquisition of Lundin Gold’s Fruta del Norte Mine finance facilities
Newcrest Mining Limited has acquired the project financing package provided to Lundin Gold’s Fruta del Norte mine in Ecuador by Orion Mine Finance Group and funds managed by Blackstone Tactical Opportunities.
In Ecuador, Bustamante & Bustamante advised Newcrest Mining Limited with Roque Bernardo Bustamante, Alfredo Larrea, Galo Sánchez, Sebastián Corral, Claudia Bustamante and Julio Olmedo.
As part of the Fruta Del Norte project finance support that concluded with the financing for the development of such project, Partner Rodrigo Borja Calisto led the transaction with the support of other Lexim Abogados’ associate lawyers.
“In our capacity as Lundin Gold Ecuadorian’s legal adviser, we participated in the entire process of the transaction carried out by Newcrest by which it acquired the Orion Resource Partners and Blackstone Tactical Opportunities. As a result of the transaction, Newcrest became the lender under the gold prepay and the stream facilities and the offtake agreements. The acquisition was structured as a purchase of the shares of Orion Resource Partners and Blackstone Tactical Opportunities for $460 million.”, explains Rodrigo.
“As part of the transaction”, he expanded, “We supported the assignment of all of the securities granted in favour of the lenders as part of the whole project finance for the Fruta Del Norte mining project, and also included Newcrest as part of the beneficiaries of such securities in Ecuador.”