K&L Gates has advised Sumatra Copper & Gold plc (Sumatra) and its Indonesian subsidiary PT Dwinad Nusa Sejahtera (Dwinad) in the US$45 million financing of its Tembang Project in Sumatra, Indonesia, by Nomura Singapore Limited (Nomura) and Indonesia Eximbank, financial institutions based in Singapore and Jakarta, Indonesia, respectively.

Although primarily a financing, the transaction involved an issue of warrants by Sumatra (ASX: SUM) to Nomura and a requirement to raise an additional amount of equity at the listed parent (Sumatra) level within six months, as well as substantial shareholder support from Sumatra’s principal shareholders.

Sumatra is a UK gold and silver emerging producer with a suite of highly prospective tenements in the Indonesian island of Sumatra. The facility will result in the hedging of up to 65% of Sumatra’s future precious metal production. All the required resolutions were passed at a shareholders meeting on 27 October 2014.

The K&L Gates team advising Sumatra was led by Perth energy, infrastructure and resources special counsel Chris Scott, who commented: “We have a team of lawyers across Asia Pacific who have decades of experience advising Indonesian companies and clients doing business in Indonesia. When it comes to this part of the world, there is no substitute for this sort of experience.”