Gilbert +Tobin has assisted Resource Capital Funds Management Pty Ltd (RCF) in obtaining approval from the Federal Treasurer for a unique land and business entities exemption certificate under the Foreign Acquisitions and Takeovers Act 1995.
The potentially renewable exemption certificate, which is the first of its kind in Australia, pre-approves investment by Resource Capital Fund VI L.P., Resource Capital Fund VII L.P. and RCF Opportunities Fund L.P. in, and their provision of financial accommodation to, resource companies, resource projects, and resource service companies over a period of three years. Subject to the conditions of the exemption certificate the funds are not required to seek separate approval from the Foreign Investment Review Board (FIRB) for each investment or loan (the targets of which have not been defined but are at large). Instead RCF is required to report post investment on a periodic basis to FIRB.
Commenting on the process, partner Phil Edmands said, “We were very grateful for the opportunity to assist RCF in obtaining this unique exemption certificate. It will allow the relevant RCF funds to not only be nimble in making new investments and in providing initial financial accommodation, but also give them great flexibility to add to investments and respond promptly to liquidity requirements of investees - in each case with the assurance that FIRB approval has already been obtained. From an Australian policy perspective the exemption certificate is also a great example of how foreign investment in promising Australian resource projects can be facilitated and streamlined.”