6 August 2009

Mallesons’ Perth practice has advised Macquarie Bank on the financing of the A$92 million Catalpa Resources Limited’s Edna May open-pit gold operations in Western Australia.

Lead Mallesons Partner on the deal, Nicholas Creed, says project finance is continuing to provide a solid stream of work for lawyers and bankers, particularly in the resources sector.

“With the recent recovery in many commodity prices, and signs of increased demand for Western Australia’s commodities in world markets, many resources projects are finding the climate for fundraising both in equity and debt markets more favourable than in many months,” Mr Creed said.

“We see a healthy pipeline of resources project finance coming to market in the second half of this year,” he said.

The legal work completed for Macquarie Bank by Mallesons involved very quickly putting in place hedging facilities to enable Catalpa to sell forward 352,316 ounces of gold at an exceptional price of A$1,544 per ounce, as well as conducting legal due diligence on the project and preparing facility documentation to include cash advance and performance bond facilities totalling A$68.3 million.

The facilities will enable Catalpa to fund growth and become Australia’s next mid-tier gold producer. Catalpa has also announced a proposed merger with Lion Selection Limited, in an increasing climate of consolidation among WA’s gold producers.

“This was a great deal to work on in the current economic climate and is a vote of confidence both in the Western Australia resources sector and Mallesons’ Perth office as a leader in Australian resources,” Mr Creed said.

Perth resources boutique firm Wright Legal acted for Catalpa. Lead Partner was Paul Wright.

More information:

Aleks Czerwinski, Communications Consultant

+61 2 9296 3703 or + 61 411 350 611

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