M & A
Acquisition of Exploration Project or Joint Venture Partnership
The review of a single or multiple exploration project or the acquisition of a joint venture interest where the partner is no longer capable of meeting its joint venture requirements is usually considered a single discipline review involving only a geological team (and not the mining, metallurgical and environmental teams). The key aspect of focus in this situation is the identification of exploration potential or “blue sky” of the property or properties being acquired. The review may or may not involve a site visit by the due diligence team. A site visit is recommended if the acquisition is by a public company and will be deemed material by the regulators. It is important that the team selected for the evaluation has significant expertise and exploration experience in the type of deposits being acquired. The team must be capable of quickly identifying both the positive and negative aspects of the property to be acquired.
Prior to engaging a due diligence team, a company should have its legal counsel review any joint venture agreements to ensure that the property can be acquired and that the acquisition will not trigger any first right of refusal clause or third party rights.
Hong Kong listed mineral companies proposing to acquire or dispose of mineral assets must produce a Competent Persons Report which will add to the cost of the due diligence review.
Read our latest News
The Bank of Russia Resumes its Purchase of Gold Bullion
NATURAL RESOURCES News The Bank of Russia has announced its plans to start purchasing gold after two years of refraining from purchasing bullion. The announcement follows from the sanctions imposed on the Russian central bank and several...
Andrew Forrest of Squadron Energy Invests Heavily in Renewable Energy in Queensland, Australia
NATURAL RESOURCES News Andrew Forrest, Australian mining billionaire, stated on 26 February 2022 that he was investing USD $2.2 billion in renewable energy in central Queensland, Australia. His company Squadron Energy acquired the...
Europe Invests Heavily in African Green Hydrogen Projects
NATURAL RESOURCES News African countries captured 11% of the green hydrogen projects announced in 2021. Bridget van Dorsten, hydrogen and emerging technologies research analyst of consulting firm Wood Mackenzie stated that African...
Nippon Steel Turns to Brazil and Australia for Iron Ore, ArcelorMittal Reduces Operations in Russia
NATURAL RESOURCES News Due to the Russo-Ukrainian War, Japan’s Nippon Steel stated that it is currently looking at alternative sources of iron ore from Brazil and Australia to purchase. Russia and Ukraine currently supply some 14% of their...
Korea and Australia Sign a MoU for Increased Investment in Australian Mining
NATURAL RESOURCES News The Korea Mine Rehabilitation and Mineral Resource Corporation (KOMIR) and the Minerals Council of Australia (MCA) have signed a memorandum of understanding (MoU) regarding the increasing of exploration and...
MMG’s Las Bambas Copper Mine Faces New Round of Blockades
NATURAL RESOURCES News MMG Limited, listed on the Hong Kong Stock Exchange (1208:HK) announced on 07 February 2022 that it would have to stop production at its Las Bambas copper mine by the 20th of February as a result of an ongoing...
