International law firm Simmons & Simmons has advised pan-African resources company Mwana Africa PLC on a Joint Venture Agreement with China’s Zhejiang Hailiang Company Limited (Hailiang) for its 100% owned SEMHKAT copper exploration area in the Democratic Republic of Congo (DRC).

Under the agreement, Hailiang will invest US$25m over a minimum of four years to earn a 62% voting interest in the Exploration Joint Venture. Hailiang has the right at any time to initiate exploration and development of a selected licence area and then, if it is found to be feasible, a mine will be developed.

Mwana Africa’s principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC and South Africa. It was the first African owned and managed mining business to be listed on London’s AIM market.

Hailiang is the largest copper pipe exporter and the largest precision copper bar manufacturer in China. The joint venture will allow Mwana Africa to accelerate its copper exploration and development programmes in Africa’s highest grade copper belt.

The Simmons & Simmons team was led by Hong Kong Corporate partner Ian Wood, assisted by Corporate associates Matthew Davis, Jingyuan Shi and Melody Yang. Paris Projects partner Yves Baratte provided advice in relation to the DRC mining licences and has advised Mwana on a number of prior transactions in the region.

Commenting on the deal Ian Wood said: “We are very pleased to have advised Mwana on this exciting joint venture with Hailiang. This was a particularly interesting transaction to work on because of the multiple jurisdictions involved and it clearly demonstrates our strength in the African mining sector.”

http://www.simmons-simmons.com/en/News/2013/02-Feb/Mwana-Africa-Joint-V…