MLT Aikins assisting Great Republic Mining's IPO agent also in deals roundup
Vancouver-based mining companies Orla Mining, Gold Standard Ventures, and Great Republic Mining Corp. all feature in this week’s deals roundup, with Cassels, Blakes, and MLT Aikins, respectively, involved as counsel in their respective deals – one acquisition and one IPO.
Vancouver-based companies Orla Mining and Gold Standard Ventures agreed to Orla’s $242-million acquisition of the gold exploration company, including the Nevada-based South Railroad Project, which is Gold Standard’s key asset.
Orla’s legal counsel are Cassels Brock & Blackwell and Neal, Gerber & Eisenberg, with Trinity Advisors Corporation and Stifel GMP as financial advisors.
Cassels’ team consisted of Jen Hansen, Jeffrey Roy and Reza Sarsangi (Securities, M&A and Mining), Jennifer Wasylyk and Jessica Gnitt (Banking & Specialty Finance), Zahra Nurmohamed and Tera Li Parizeau (Tax), Davit Akman, Tegan O’Brien and Olivia Ells (Competition & Foreign Investment), Caitlin Russell (Employment & Labour) and Andy Pike, Rosina Jagore and Jessica Kotsopoulos (Corporate Services).
Gold Standard’s legal advisors are Blake, Cassels & Graydon and Dorsey & Whitney, with TD Securities as financial advisor. Paradigm Capital is the financial advisor to a Special Committee of Gold Standard Directors.
Blakes team consisted of Bob Wooder (lead lawyer, M&A), Susan Tomaine, Conor Kennelly, Darren Whitehouse (Securities/M&A), John Fast, Fraser Malcolm (Competition), Bill Maclagan, Kevin Zimka (Tax), and Sarah Manifold (Financial Services).
Orla Mining CEO Jason Simpson said, “This acquisition advances our strategy of creating stakeholder value through responsibly building and operating a portfolio of high-margin, cash-generating assets with superior geological prospectivity. The South Railroad Project is analogous to our recently completed Camino Rojo mine – a low capital intensity, open pit, heap leach project in a desirable location with exploration upside. We have the team, partners, and financial resources to develop this quality asset and we are ready to go.”
Gold Standard CEO Jason Attew said, “We are excited to combine with Orla to create a leading gold producer with the potential to have multiple low-cost, low-complexity, open pit, heap leach operations in the near future. This transaction provides Gold Standard shareholders with an immediate upfront premium, exposure to a well-financed gold producer, and strong upside potential as Orla delivers and de-risks the combined asset portfolio. Based on their recent success in constructing the Camino Rojo Oxide Mine on schedule and under budget, we believe that Orla is an ideal partner to bring South Railroad into production.”
Vancouver-based Great Republic Mining Corp. completed an initial public offering (IPO) for gross proceeds of $786,000 on June 8 and began trading on the Canadian Securities Exchange (CSE) on the next day, June 9.
MLT Aikins lawyers Kevin Sorochan, Selena Chen, and Steven Meng served as legal advisors to Haywood Securities Inc., which acted as agent for Great Republic’s IPO.
Proceeds from the IPO will be used to fund exploration of Great Republic’s project, the Porcher Property, which includes nine contiguous mineral titles covering an area of 3,560 hectares in northwest British Columbia.
IndInfravit Trust, a Canada Pension Plan Investment Board-led infrastructure investment trust, agreed to acquire five India-based operational road projects from Brookfield Asset Management Inc. at an enterprise value of $1.55 billion.
Cyril Amarchand Mangaldas acted as legal counsel to IndInfravit, with Ambit as exclusive financial advisor.
The road projects include three toll roads and two annuity roads, with approximately 2,400 lane kms in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh.
"This transaction is one of the largest acquisitions in the highways sector in recent times,” said Pawan Kant, CEO of LTIDPL IndvIT Services Limited (Investment Manager to the IndInfravit Trust). “It is a testament to the confidence of long-term patient capital in the India growth story, duly represented by the Highways sector. All the five operating assets are part of the National Highways program and in states contributing in total c.30% of India's GDP. With strong backing of its major unitholders, IndInfravit is well positioned for India's Infrastructure Monetization plans. Stepping into its fifth year of operations, our InvIT presents itself as an established and reliable platform for developers and sponsors to divest their assets, thus creating value and generating significant economic benefit for both parties."
"We remain a committed supporter of IndInfravit – a portfolio that encompasses significant and critical roads assets," said Scott Lawrence, CPP Investments Managing Director and Head of Infrastructure. "This acquisition provides growth and geographic diversity to the InvIT and will ensure the continued delivery of high-quality infrastructure to different regions across India. Increasing our interests in Indian infrastructure is part of our ongoing commitment to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries."
Read more: Canadian pension funds to invest in Indian infrastructure
Cenovus Energy agreed to acquire the remaining 50-percent interest in the Sunrise oil sands project in northern Alberta from bp, a British oil and gas company, for $600 million in cash.
The transaction also includes a contingent payment with a maximum cumulative value of $600 million expiring after two years and Cenovus’ 35-percent stake in the Bay du Nord project offshore of Newfoundland and Labrador.
Cenovus President and CEO Alex Pourbaix said, “Acquiring the remaining working interest in Sunrise enables us to fully benefit from the significant optimization opportunities available. By applying Cenovus’s advanced operating techniques, we expect to increase production at Sunrise while driving down sustaining capital, operating costs and emissions intensity.”
Starlee Sykes, bp senior vice president, Gulf of Mexico & Canada, said, “This is an important step in our plans to create a more focused, resilient and competitive business in Canada. Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador. Along with bp’s active Canadian marketing and trading business, this will position bp Canada for strong future growth.”
The transaction is expected to close in the third quarter of this year.
