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Nabarro closes two mining deals in one day

20 January 2011

Nabarro has advised longstanding mining client, Caledon Resources plc, on its placing to raise £48.6m. The funds will be used for the repayment of debt as well as to provide working capital to assist the company with business interruptions caused by the recent flooding in Queensland, Australia.

The Nabarro team was led by corporate partners Warren Taylor and Ian Binnie, assisted by associate Jack Shepherd and trainee Sarah Mitchell.

Commenting on the deal Mark Trevan, Managing Director of Caledon, said, "The proceeds from this placement enable the Company to discharge the loan obligations to Polo Resources and associated security over Minyango and significantly strengthen our balance sheet at a time when resumption of railings from the Cook mine, and therefore sales, remains uncertain."

Nabarro's corporate team also advised Liberum Capital Limited as broker, sole bookrunner and placing agent to mining company Ncondezi Coal Company Limited on its placing to raise £23.4m. The team previously acted for Liberum on Ncondezi's fundraising and admission to AIM last year.

Ncondezi, which specialises in coal exploration and development principally in Mozambique, intends to use the funds raised for the exploration and development of additional licences in Mozambique, the financing of logistics studies on rail and port solutions in the area as well as to effect the buyback of shares from a pre-IPO shareholder at a discount to the IPO price.

The Nabarro team was led by Corporate partner Kristy Duane assisted by associate Ben Price.

Ncondezi's CEO, Graham Mascall, said, "This transaction is accretive to shareholders as it provides Ncondezi with significant additional funding to pursue its exploration strategy whilst slightly reducing the issued share capital of the Company."

These two deals follow on from our £1.6bn of natural resources transactions last year including the flotations of Bellzone Mining, Ncondezi Coal and KSK Power Ventur and fundraisings for Falkland Oil & Gas, Faroe Petroleum, JKX Oil & Gas and Nautical Petroleum. They highlight the firm's strength in this sector as well as its cross border expertise.

Kristy Duane commented, "The high levels of investor interest in both fundraisings reflect the enhanced liquidity the equity capital markets are currently experiencing."


For further information, please contact:

Alex Bellinger
Nabarro, PR & E-Communications Manager
a.bellinger@nabarro.com
T +44 (0)207 524 6391