Morales & Besa advised Anglo Pacific Group Plc on financing granted to “Mantos Blancos”
Morales & Besa successfully adivsed Southern Cross Royalties, a limited liability company incorporated in England, in granting a royalty consideration under the “Mining Royalty” structure, to the company Mantos Cooper S.A., to develop its Mantos Blancos mining project, which will be paid based on the production derived from the exploitation of the mining site owned by the society.
This operation is important for Mantos Cooper S.A., considering that it allows the extension of the service life of the Mantos Blancos mining project until 2035.
The transaction was challenging. In first place, because “Royalty Mining” contracts are not regulated in Chilean legislation, and the regulation of their guarantees or the way to ensure payment of the royalty, using the local legal securities, is of complex adaptation.
Additionally, Southern Cross Royalties, had to coordinate with other two creditors of the project (Osisko and Glencore) the regulation of their credit rankings and their respective guarantees, which implied the coordinated signature of local and foreign documentation, and the coordination between the various law firms that represented the interests of each lender.
The Morales & Besa’s team that participated in this operation was led by partner Eugenio Besa, along with senior associates Katannya Jablonski and James Channing, and associate Ignacio Zaldívar.