Morales & Besa advised Arena Minerals Chile in the incorporation with SQM of two contractual mining companies
Morales & Besa successfully advised Arena Minerals Chile SpA, a subsidiary of Arena Minerals Inc., in the incorporation with SQM of two contractual mining companies, to which the mining concessions owned by Arena (80%) and SQM (20%), located in the boroughs of María Elena and Antofagasta, which correspond to the epithermal gold Paciencia project and the copper porphyry Pampa Union project. The referred companies shall perform exploration and exploitation activities over such mining properties.
The projects Paciencia and Pampa Union cover nearly 7,000 hectares, which entailed the formation of two joint venture companies with SQM (80% Arena and 20% SQM).
In addition, a royalty in favor of SQM was included, to be determined as established in the Unilateral Option for the Purchase of Mining Concessions Agreement -Sierra Gorda-.
The importance of this transaction, specifically, is that it finished an extensive and complex process of due diligence, negotiation and development, by which Arena Minerals Chile SpA executed the option to purchase 80% of certain mining concessions owned by SQM, which were, consequently, contributed to two joint companies, with the purpose of exploring and exploiting the mining concessions associated to the mining projects Paciencia y Pampa Unión. In particular, the deal originally encompassed more than 1,400 mining concessions, around 7,000 hectares and demanded a legal, technical and financial process which lasted over 6 years.
The Morales & Besa team that participated in the transaction was composed by partner Eugenio Besa, director Lorena Barrientos, senior associate Katannya Jablonski, and associates Alfonso De Urruticoechea and Mariana Schnettler.