HWL Ebsworth advises Nzuri Copper on its acquisition by Chengtun Mining

16 March 2020

HWL Ebsworth advised Nzuri Copper Limited (Nzuri) in relation to its acquisition by Chengtun Mining Group Co. Ltd (Chengtun) by way of a scheme of arrangement.

Nzuri is an ASX-listed Australian incorporated company focused on the exploration and development of high grade copper and cobalt deposits in the Democratic Republic of Congo. Nzuri was a long-term client of Bellanhouse (now merged with HWL Ebsworth), with Bellanhouse having previously advised Nzuri in relation to its various capital raising activities, acquisitions and general commercial and corporate matters.

Chengtun is a Chinese-based company listed on the Shanghai Stock Exchange. The transaction was undertaken through a wholly owned subsidiary of Chengtun, Xuchen International Limited (BVI incorporated).

The transaction resulted in Chengtun acquiring all of the shares in Nzuri for $0.37 per share, a 42% premium to the closing price of Nzuri share prior to the execution of the transaction, as well as the cancellation of all existing options on issue. The total consideration paid was approximately $110.73 million.

The HWL Ebsworth team (then Bellanhouse) played a key role in the structuring of the transaction, which involved the negotiation of the scheme implementation deed, option cancellation deeds and secured loan funding arrangements, which were executed in February 2019. As a result of continued delays in Chengtun receiving regulatory approvals in China, the transaction completed in March 2020.

The HWL Ebsworth team was led by Deanna Carpenter (partner), with Shaun Hardcastle (partner) and Elizabeth Phillips (solicitor) advising on all aspects of the transaction.

Note to Editors:

HWL Ebsworth is the largest legal partnership in Australia according to the most recent partnership surveys published by The Australian and the Australian Financial Review.

The firm comprises 1,356 staff including: 265 Partners, 717 other legal staff and 374 support staff across offices in nine locations – Adelaide, Brisbane, Canberra, Darwin, Melbourne, Hobart, Norwest (North West Sydney), Perth and Sydney.

HWL Ebsworth is an independent, nationally integrated, full service commercial law firm, providing tailored and commercially oriented legal services.

HWL Ebsworth operates a different business model to the other leading national law practices, and this allows us to offer unrivalled value for money without compromising quality and service. Our low ratio of solicitors to partners ensures that our clients receive optimal access to partner resources for all matters.

For further information, please contact:

Russell Mailler, National Marketing Manager (03) 8644 3569 or rmailler@hwle.com.au

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