Rio2. MPSF Acquisition
1. Deal Description
Guerrero Olivos represented Canadian listed mining company, Rio2 Limited and Rio2 S.A.C., in the acquisition of local mining company, Compañía Minera Paso San Francisco S.A. (“MPSF”).
MPSF owns strategic mining infrastructure and facilities located adjacent to Rio2’s Fenix Gold Project in Chile.
The acquisition was valued in USD1.5 million and brings several strategic benefits to Rio2 and its optimization plans for the development of its nearby Fenix Gold Project, currently guided to commence construction in Q4 2021 which is valued in more than USD100 million.
Complexity to this transaction was the need to negotiate and solve relevant and complex issues in connection with the guarantee of the closure plan of mining Company Compañía Minera Paso San Francisco S.A., and also to negotiate and execute the agreements during the COVID-19 locakdown
The work included an intense due diligence process, which included water law, mining property, electric easements, environmental issues, regulatory matters and multiple permits, among others.
In addition, it is important to note that Inversiones Alxar S.A., a subsidiary of Empresas Copec S.A., a large Chilean industrial conglomerate, owned MPSF.
2. Counsel list
Counsel to Rio2 Limited and Rio2 S.A.C.: Guerrero Olivos
Partners: Pedro Lyon and Benjamín Pérez [email protected]
Associates: Magdalena Urquidi and Jerónimo Zabala
Counsel to Inversiones Alxar S.A. and Minera Camino Nevado Limitada: Portaluppi, Guzmán y Bezanilla
Partner Juan Francisco Guzmán
Alxar S.A.’s Corporate Affairs Counsel: Silvia Baeza
3. Date of closing
14/04/2020
4. Deal Value
Acquisition: USD1.5 million. Gold Project: valued in more than USD100 million
5. Jurisdictions involved
Chile and Canada