Cassels Brock & Blackwell LLP in Toronto, Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) and Taylors in association with Walkers in Bermuda have helped Canadian mining company Continental Gold obtain a loan of US$250 million for the development of a mine in Antioquia – in the largest project finance ever in Colombia’s mining sector.
The lender, Red Kite Mine Finance, acted through special purpose vehicle RK Mine Finance Master Fund I, based in Bermuda, and took counsel from Norton Rose Fulbright offices in Bogotá and Toronto and Conyers Dill & Pearman in Bermuda.
The funds will be used for the large-scale development and construction of the Buriticá gold mine project, 90 kilometres northwest of Medellín. The project financing is the largest ever in the Colombian mining sector, and will give Continental immediate access to US$100 million of the loan subject to certain conditions. The deal closed on 10 January.
Authorised mining projects are a rarity in Colombia, due to the difficulties concessionaires can face obtaining environmental permits. The country’s constitution imposes strong protections on indigenous communities’ rights and territory.
Widespread illegal goldmining, a common source of revenue for the FARC guerrilla movement, has also created a negative stigma and given rise to strong political and social objection to mining across Colombia.
Counsel to Continental Gold
In-house counsel – Jessica Celis Mejía
Cassels Brock & Blackwell LLP
Partners David Budd, Patience Omokhodion, Christopher Norton, Cathy Mercer, Lindsay Clement and Jay Goldman and associate Carla Potter in Toronto and associate Jenna Clark in Vancouver
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partners Juan Fernando Gaviria and Carolina Rozo and associates Mateo Sinisterra, Leonardo Cote, Maria José Ariza, María De Bedout and Antonio Gómez in Bogotá
Taylors in association with Walkers
Partner Jonathan Betts and associates Phelecia Barnett and Ben Green in Bermuda
Counsel to Red Kite Mine Finance Limited
Norton Rose Fulbright
Partner Geoffrey Gilbert, of counsel Alison Babbit and associate Ahad Ahmed in Toronto
Norton Rose Fulbright (Colombia)
Partner Jorge Neher and associates Nicolás Arboleda, Efrain Peña and Pablo Martínez in Bogotá
Conyers Dill & Pearman
Director Jason Piney and associate Cathryn Minors
