Philippi Prietocarrizosa Ferrero DU & Uría (Peru) has helped local mining company Minera IRL to refinance a US$104 million credit facility.
De Bracamonte, Haaker & Castellares Abogados advised the lender, Peruvian state-owned development bank Corporación Financiera de Desarrollo (COFIDE).
The parties signed the agreement on 14 June.
The refinancing will help Minera to pay its outstanding debt and open a path to fund and complete its flagship Ollachea gold mine, located in Peru’s southern city of Puno. The mine is operated and owned by Minera’s subsidiary Minera Kuri Kullu (MKK).
The refinancing is guaranteed by a trust over the shares of MKK and the mining concessions of the Ollachea project. Furthermore, a second trust guarantees the financing over collection rights and cash flows arising from the sales of gold.
Minera was established in 2000 and is listed on the Lima stock exchange and the Canadian Securities Exchange in Toronto. It manages the Corihuarmi gold mine in central Peru and has been operating the Ollachea gold project since 2008.
Last year, COFIDE agreed to pay US$34 million to Minera to satisfy an arbitration award and settle a dispute over a financing deal for the Ollachea gold project. The dispute arose after the development bank terminated a credit facility to focus on financing small and medium-sized businesses instead.
Counsel to Minera IRL
Philippi Prietocarrizosa Ferrero DU & Uría (Peru)
Partner Guillermo Ferrero and associates Victor Abad and Jesibel Rosillo
Counsel to COFIDE
In-house counsel – Marco Rongagliolo and Rodrigo Zapata
De Bracamonte, Haaker & Castellares Abogados
Partner Ricardo Haaker and associates Hector Vargas and Franz Essenwanger