Watson Farley & Williams (“WFW”) advised Guardian Metals PLC (“GMP”) on its acquisition of a 100% interest in Copper Bay Limited (“CBL”) and its copper and gold tailings project in Chile. Majority shareholder Central Asia Metals PLC sold its 76.1% interest in CBL, triggering compulsory drag-along rights over the remaining 23.9% held by minority shareholders. GMP is acquiring 100% of the project for a total deferred consideration of US$7.5m payable in two equal instalments on the aggregate production of 7,500 tonnes and 15,000 tonnes of copper cathode and/or copper concentrate.
CBL owns the Chilean-registered entities developing the Chañaral Copper Project, an advanced copper and associated gold tailings retreatment project in the Chañaral Bay area. The project is in a site of historic tailings disposal on the beach at Chañaral Bay which comprises of a JORC compliant mineable resource with an estimated 53 million metric tonnes of tailings. GMP expects the recovery of these tailings will restore Chañaral Bay to an environmentally sustainable state and re-establish it as a public resource for the local community.
GMP is a leading mining company dedicated to the exploration, development and production of battery metals, especially copper. With a strong focus on sustainability and innovation, it works to promote the growing demand for clean energy solutions in the mining sector.
The multidisciplinary WFW London team that advised GMP was led by Corporate Partners Jan Mellmann and Sarah Williamson supported by Associate Sulaiman Hoosen and Trainee James Fitzjohn. Finance expertise was provided by Partner Daisy East and Associate Sindana Ulaganathan, with Partners Richard Stephens and Claire Miles, supported by Associate Pip Moss, advising on tax matters.
Jan commented: “We’re delighted to have been able to help our client secure this flagship project on such attractive commercial terms when the relevant commodity prices are excellent and the project economics highly attractive”.
Sarah added: “With our deep mining sector expertise across all key service lines and our strong commitment to promoting sustainability, WFW was ideally placed to support GMP on such an important, ESG-friendly project”.
