WFW Advises Versamet on $170M Mining Royalty Acquisition
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Appian Capital Advisory Acquires Precious Metals royalties adn Streams from versamet
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Published: October 26, 2023 | Last Updated: October 27, 2023
This article details the acquisition of royalty and stream rights by Appian Capital Advisory LLP from Versamet, encompassing assets in Namibia and Brazil. Information is current as of October 27,2023,and will be updated as new details emerge.
Transaction Overview
Appian Capital Advisory LLP (“Appian”), a UK-based private equity firm specializing in metals and mining, has completed the acquisition of a portfolio of precious metals royalties and streams from Versamet, a Canadian mid-tier royalty and streaming company. The deal includes a 90% silver stream on the Rosh Pinah Zinc mine located in Namibia, and a 2.75% net smelter return royalty on the Santa rita mine in Brazil, along with associated security packages. The acquisition strengthens Appian’s position in the precious metals sector and expands Versamet’s portfolio.
legal Counsel and Advisors
The transaction involved a team of international legal experts. Cassels Brock & Blackwell of Canada served as lead counsel to Versamet. Ogier provided legal advice concerning Jersey law, Ilaria Mittiga Advocacia offered guidance on Brazilian law, and ENSAfrica Namibia advised on Namibian law. WFW (Watson Farley & williams) advised Versamet with a London-based team led by Projects Partner Daisy East, supported by Associates Hiwaizi and Kate Clancy, and Trainee Sam Gunnewicht. Additional support was provided by Corporate and M&A Partner Jan Mellmann and Financial Markets and Products Partner Rob McBride.Dispute Resolution Partner Andrew Hutcheon and Senior associate Simon Jennings contributed arbitration expertise.
Asset Details
Rosh Pinah Zinc Mine (Namibia)
The Rosh Pinah Zinc mine, operated by Trevali Mining Corporation, is a significant zinc and silver producer in Namibia. trevali Mining reports that Rosh Pinah is one of the world’s largest single zinc mines. The 90% silver stream acquired by Appian represents a claim to a percentage of the silver produced at the mine. this stream provides Appian with exposure to silver price fluctuations and the mine’s ongoing production.
Santa Rita Mine (Brazil)
The Santa Rita mine, located in the state of Bahia, Brazil, is a gold and silver operation.The 2.75% net smelter return royalty acquired by Appian entitles the firm to a percentage of the revenue generated from the sale of metals produced at the mine, after deducting smelting and refining costs. This royalty provides a long-term income stream tied to the mine’s profitability. Aurora Minerals currently operates the Santa Rita mine.