Ashurst advises NAIF on A150m financing

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    The Project is located 240km north of Geraldton, an established mineral sands export port, and will comprise mining operations, beneficiation, minerals separation processing and associated infrastructure to produce 23.4Mtpa of mineral sand products. The loan of up to A$150 million will create hundreds of jobs in the Coburn Heavy Minerals Sands Project in the Gascoyne, Western Australia.

    NAIF is a A$5 billion development financier to infrastructure projects in the Northern Territory, Queensland and Western Australia. NAIF’s mission is to be an innovative financing partner in the growth of northern Australia. A key focus of any financing is to drive public benefit, economic and population growth and Indigenous involvement in northern Australia.

    Ashurst advised in respect of an AU$150 million secured term loan to Coburn Resources Pty Ltd, and advised the bondholders led by ABG Sundal Collier ASA (the Bond Arranger) and subsequently Nordic Trustee AS (the Bond Trustee) with respect to the Australian law requirements under a US$60 million bond issue, for the development and construction of the Project.

    The Ashurst team was led by projects partner Gaelan Cooney, who commented, "We are very pleased to have acted on this significant mining financing and continued our relationship with NAIF. The Project is expected to be one of the world's largest and most capital efficient mineral sands projects, expecting to generate up to A$922 million in economic impact to the region over 25 years. We look forward to continuing to work with NAIF to bring this exciting project, and hopefully future ones, to fruition."

    Gaelan was assisted by counsel Marina Tinning, senior associates Zoe Woolford and Michelle Gaynor, and associate Dominique Roth.