G+T has advised New Century Resources Limited (New Century) on its successful A$180 million refinancing of existing environmental rehabilitation bonds required at its Century Mine project, located in far north-west Queensland.
New Century’s flagship Century Mine is the largest tailings reprocessing operation in Australia and is a major global producer of zinc annually.
The G+T team advised New Century on all aspects of the transaction, which included a complex debt financing package stapled with long-term zinc hedging transactions with Macquarie Bank comprising 172,500 tons of zinc metal. The total value of zinc hedging represents more than A$650 million in forecast future sales from current Century tailings operations. Argo Group and Macquarie Bank provide the facility arrangements under the transaction.
The transaction was run alongside a successful c. A$117 million equity raise, with support from New Century’s cornerstone investor - Sibanye-Stillwater.
The transaction was led by Head of Energy + Infrastructure Alexander Danne, with support from Lawyer James Frixou on the financing, and Special Counsel Lloyd Chater on the project diligence. Lawyers Jarrod Gook, Tiffany Sorge and Ruby Ballantyne also assisted.
Head of Environment + Planning Ben Fuller coordinated all environment and planning aspects of the transaction with support from Lawyers Nina Pearse and Ben Hayward. Special Counsel Christopher Marchesi, assisted by Lawyers Amelia Arndt and John Larbalestier, coordinated the diligence on Century’s mining tenements.
Head of Energy + Infrastructure Alexander Danne, said “This is a transformative transaction for New Century, which will unlock material flexibility for the company for further opportunities it seeks to progress.”