Leading international law firm Clifford Chance has advised Norilsk Nickel Australia Pty Ltd on the sale of its North-Eastern Goldfields Operations (including the Thunderbox and Bannockburn gold projects) located in Western Australia to Saracen Mineral Holdings Ltd (ASX: SAR).

The consideration payable to Norilsk comprises:

  * an upfront cash payment of A$20 million on settlement;
  * a deferred cash payment of A$3 million upon the sooner of commencement of commercial production, or if, after a period of 24 months after completion, the prevailing gold price has exceeded A$1,550/oz for a calendar month;  plus
  * a 1.5% NSR royalty on all minerals capped at A$17 million.

Norilsk Nickel Australia is a part of the OJSC MMC Norilsk Nickel group, the world's largest nickel and palladium producer and one of the largest producers of platinum and copper. The company originated in Russia more than 70 years ago and currently has operations in Russia, Finland, Botswana, South Africa and Australia.

The North-Eastern Goldfields Operations were seen as non-core assets for the nickel focused Norilsk and have been on care and maintenance since 2007.

Partner Justin Harris led the Clifford Chance team advising Norilsk Nickel, assisted by corporate counsel Sean Houthuysen and environmental law counsel Robyn Glindemann.

"Despite the number of mining assets currently available for sale, we are seeing continued interest in these assets, particularly from domestically focused players," said Justin. "Clifford Chance's   experience in advising both multinational companies and small to mid-tier miners is invaluable in managing both parties' expectations and closing such transactions smoothly."