Ashurst has advised Mawson West Limited on a US$33.4 million (approx. A$40.6 million) financing package provided by Galena Private Equity Resources Fund LP (Galena), comprising an equity injection, the provision of debt finance and an associated debt restructuring.

The financing package contemplates a placement of Mawson West shares to Galena, loan facilities provided by Galena to Mawson West, Mawson West's issue of share purchase warrants to Galena as partial consideration for the loan facilities and an agreement by Galena to backstop (effectively underwrite) future financing transactions contemplated by Mawson West.

Galena's affiliate entity, Trafigura Pte Ltd (Trafigura) (Mawson West's current off-taker and senior lender) will also provide additional financial assistance to Mawson West through amendments to its existing prepayment facility, senior debt facility and an extension to the term of its off-take agreement.

The transaction also includes an number of ancillary rights agreements, which provide Galena with nominee director appointment rights, anti-dilution rights, demand prospectus rights and piggyback registration rights.  Aspects of the transaction remain subject to a number of conditions, including Mawson West shareholder approval under section 611 (item 7) of the Corporations Act 2001 (Cth) for the issue of new shares on Galena's exercise of the share purchase warrants and pursuant to the backstop arrangement.

Mawson West is an Australian-based copper producer, developer and explorer, with a focus on the Democratic Republic of Congo (DRC).  Mawson West's ordinary shares are listed on the Toronto Stock Exchange.  The proceeds of the financing, and the amendments to the existing documents with Trafigura will be used to provide Mawson West with sufficient working capital to manage the uninterrupted ramp-up of its Kapulo copper mine in the DRC.

The Ashurst team was led by corporate partner Roger Davies who was assisted by senior associate Elizabeth Hourigan and lawyers Richard Tan and Amy Grondal.