PAGBAM has helped Compañía Inversora Argentina para la Exportación S.A. (“CIAPEXA”) and Compañía Inversora en Minas S.A. (“CIMINAS” and together with CIAPEXA, the “Sellers”) closed the sale of 100% of their share capital in Minera Don Nicolás S.A. (“MDN”) to Cerrado Gold Inc. (“Cerrado” or “Purchaser”).
Minera Don Nicolás is a company dedicated to the exploration and extraction of gold in the Argentine Province of Santa Cruz. The Sellers comprise a large number of companies (BGH, Mirgor, Newsan, Brightstar) that manufacture electrical products in Tierra del Fuego, whereas Cerrado Gold is a 100% privately owned company headquartered in Toronto, Canada, with the current focus on exploring and developing the Monte Do Carmo gold property in Tocantins state, Brazil.
The deal closed on March 16, 2020 for a value of USD 47,000,000.The Sellers are also entitled to a performance bonus based upon an increase in reserves of gold in the future.
PAGBAM was the leading firm representing the Sellers in the drafting and negotiation of all transaction documents.
The transaction had several challenges since we represented a large number of clients with conflicting interests that had to be dealt with. In addition, Sellers financed a significant part of the purchase price (which required the granting of different guarantees).
Counsel to Sellers:
Perez Alati, Grondona, Benites & Arntsen
Partner P. Eugenio Aramburu, counselor Tomás Perez Alati, and associates Juan Negri and Cristián Chang in Buenos Aires.