Dechert Advises CMGC on $200 Million Loan in Russian Mining Sector
December 22, 2011
Dechert News Release
A team from Dechert LLP is advising CJSC Chukotka Mining and Geological Company (CMGC), the 100% owner of the Kupol gold and silver mine in the Chukotka Autonomous Okrug of the Russian Federation’s Far East Region and the 100% indirect subsidiary of Canada-headquartered Kinross Gold Corporation (NYSE: KGC) (TSX: K), on a $200 million non-recourse loan from a group of international financial institutions to finance the increase in Kinross’s ownership of the Kupol mine from 75% to 100%. Kinross announced on December 21 that the loan had been funded. Dechert previously advised Kinross on the acquisition of the relevant 25% stake, which closed on April 4, 2011.
The non-recourse loan carries a term of five years, with annual interest of LIBOR plus 2.5%. Lead arrangers and lenders are Export Development Canada, BNP Paribas, HSBC Bank PLC, ING Bank N.V. and Société Générale.
The Dechert team advising CMGC is led by Moscow managing partner Laura M. Brank and includes partner Corinna Mitchell and associates Olga Watson, Alexander Volnov, Ruslan Koretski, Liselot Ronz and Andrey Dukhin.
Dechert’s Moscow office encompasses a highly regarded team of Russian-, U.S.-, English- and dual-qualified lawyers who work closely with Dechert’s lawyers in Europe, the United States and Asia on cross-border and international matters. The “talented” and “commercially targeted” transactional team (The Legal 500 (EMEA), 2011) advises Russian and multinational clients on the full spectrum of corporate and finance matters in Russia, including numerous complex multijurisdictional debt and/or equity financings. Dechert was ranked by mergermarket as one of the leading legal advisors by deal value in Russia and CEE in 2010.