Australia’s SolGold secures $750m financing to develop Ecuador mine

The financing will be provided by Franco Nevada Corporation (FNC) and Torys LLP, and which constitutes one of the largest mining transactions in Ecuador in recent years.

The financing agreement will support the next phase of development for the Cascabel Project, one of the world's largest copper-gold discoveries and the most significant large-scale mining project in Ecuador to date.

The Cascabel project, located in the northern region of Ecuador, has garnered international attention due to its vast copper and gold reserves. The project's successful development is expected to have a transformative impact on the Ecuadorian economy, creating numerous job opportunities, and boosting community development and general business growth.

SolGold was advised on the transaction in Ecuador by law firm Tobar ZVS.

Tobar ZVS's involvement in this significant transaction underscores its commitment to providing top-tier legal services in Ecuador's evolving corporate landscape, the law firm said in a statement.

Representing SolGold's interests in Ecuador since 2013, Tobar ZVS played a pivotal role in negotiating the main transaction documents, in collaboration with SolGold's Canadian counsel, and led the structuring of the security package.

Bernardo Tobar, managing partner at Tobar ZVS and leader of the firm’s transaction team, commented, "We are very happy for the successful negotiation and closing of the $750 million stream agreement, which once again proved the breadth and depth of the firm's capabilities. I am also very proud of the outstanding team of professionals at the firm that assisted in this transaction.”

“This was a highly complex project requiring a multidisciplinary approach and the engagement of experienced professionals from various firm’s practice divisions, including   corporate, finance, mining, regulatory, and tax advisory. I am very grateful for the continued trust of our client, SolGold Plc., and for being a partner in the advancement of the Cascabel project, which will bring about significant social and economic improvement for Ecuador."

The successful closing of this financing agreement is a testament to Tobar ZVS’s proficiency in corporate law in general and project finance in particular, and its ability to facilitate large-scale, complex cross-border transactions, the firm said.

FNC was advised on the financing by law firm ECIJA GPA, and whose team was led by partner Álvaro Ordóñez, with Michael Veintimilla, María Belén Vivero, Camila Andrade, Juan Domingo Cárdenas and Andrés Villacis. 

The team’s expertise was key to navigating the complexities of this transaction, the law firm said. 

ECIJA GPA provides global and specific advice in ​​energy and natural resources, with a practice subdivided into energy, oil, gas, mining, renewable resources, environment and sustainability.