PPU counsels Mineral IRL on 104.6m refinancing
PPU has advised Minera IRL on the refinancing of $104.6 million granted by COFIDE in Peru
Philippi Prietocarrizosa Ferrero DU & Uría has counselled Minera IRL, IRL’s UK-based Peruvian subsidiary, on a loan refinancing granted by Corporación Financiera de Desarrollo (COFIDE).
The transaction was closed on 14 June and had a value of $104.6 million. The terms and conditions of the principal and interest payments on the loan were agreed until the maturity date of the contract.
Bracamonte, Haaker & Castellares Abogados represented the creditor.
The refinancing was secured by an asset trust over 100% of the shares owned by MIRL in Compañía Minera Kuri Kullu (MKK) and the mining concessions comprising the Ollachea gold project, operated by MIRL and located in Puno, southern Peru. It was also backed by a flow trust over present and future receivables, determined or determinable, arising from gold concentrate or refined gold bar sales contracts and a lease agreement on a beneficiation plant to be entered into, as well as the flows associated with such receivables, in order to guarantee the payment of the company’s obligations. These trusts are administered by the Trustee.
This deal is part of a settlement agreement reached between the parties last November after ending an arbitration process initiated in 2017 by IRL, following COFIDE’s default on a bridging loan granted to the company. The negotiation will allow the miner to secure financing for the development of the project, as well as provide security to potential financiers.
Minera IRL explores and develops mines in Peru with a focus on gold. The company operates the Corihuarmi mine, located in the central Andean region of the country. The Ollachea community is expected to receive a 5% interest in the Ollachea mine once commercial operation begins.
PPU’s team consisted of partner Guillermo Ferrero (pictured left), together with senior associate Victor Abad (pictured top right) and associate Jesibel Rosillo (pictured bottom right).
Bracamonte, Haaker & Castellares Abogados’ team was formed by partner Ricardo Haaker Yori, senior associate Héctor Vargas Antonio and associate Franz Essenwanger Delgado.
