Ashurst has advised State General Reserve Fund of Oman (SGRF) on an equity capital market agreement with Elemental Minerals Limited (Elemental), in a deal with a combined value of US$50 million.

SGRF has agreed to acquire shares and options in Elemental in an interdependent investment agreement with subscribers Sociedad Quimica y Minera de Chile S.A. (SQM) and Summit Private Equity (Summit).

The agreement included the negotiation of certain offtake and marketing rights, and rights of first refusal over product from Elemental's potash project, being the Kola Sylvinite Project in the Republic of Congo. Completion of the agreement is expected to occur before November 2016, and each of the interdependent agreements are subject to approval by Elemental's shareholders.

SGRF's investment in Elemental is consistent with the company's focus on strategically investing the Omani Government's reserves to provide long-term return, while also diversifying away from the oil and gas sector. The interdependent investments by SGRF, Summit and SQM bring a combination of potash experience, Latin American, Middle Eastern and African influence, financing expertise and capability to Elemental's projects.

The lead partner on the deal was Ben Warne (Corporate). Ben was assisted by lawyer Dallan Pitman and graduate Joey Chan (Corporate); partner Tony Denholder; counsel Nerida Cooley; and lawyer, Libby McCarthy (Energy and Resources).