Transaction|May 24, 2018
Leagold finances its acquisition of Brio
Torys acted as counsel to Orion Mine Finance with a team that included Michael Pickersgill, Tom Zverina, Jacob Weinstock, Braden Jebson, Michael Jason and Isabella Ssozi.
On May 2, 2018, Leagold Mining Corporation ("Leagold") announced the arrangement of the following debt, equity and offtake financing package with Orion Mine Finance ("Orion"), which closed on May 24, 2018 shortly after the completion of its acquisition of Brio Gold Inc. ("Brio"). The financing package included:
- The amendment of Leagold's existing US$150 million senior secured credit facility, with a syndicate of lenders led by Orion, to provide an additional US$100 million tranche of funding, which has now been fully drawn. The tranche has a term of 18 months and was used to fully repay Brio's US$75 million senior secured credit facility and will support the repayment of the drawn amounts of Brio's debt with a group of Brazilian banks, which currently amounts to approximately US$14.1 million. As consideration for the US$100 million tranche and effective with the closing of the Brio acquisition, Leagold agreed to a fee of US$1.5 million payable to the lenders.
- An amendment to Orion's existing offtake arrangement with Leagold with respect to the Los Filos Mine, increasing the aggregate gold off-take delivery commitment under the offtake, as well as entering into a new offtake agreement with respect to the Brio assets on substantially the same terms as the existing Los Filos offtake agreement.
- Orion subscribed for 21,317,098 new Leagold common shares, equivalent to US$45 million at C$2.7143 per share. This investment resulted in Orion maintaining its ownership in Leagold at approximately 16%. In addition, Leagold issued 2.0 million warrants to Orion, in which each warrant is exercisable for one Leagold common share for a period of three years from the date of issuance at an exercise price of C$3.529, equivalent to 130% of the equity subscription price.
Leagold is building a mid-tier gold producer with a focus on opportunities in Latin America.
Orion is a mining-focused investment business with approximately US$4.50 billion under management (as of January 31, 2018) specializing in providing comprehensive and customized capital investment solutions to mining companies.
Further information can be found on Canada Newswire's website.