Torys, Mayer Brown, Philippi Prietocarrizosa Ferrero DU & Uria, Bofill Mir & Alvarez Jana, Fasken Martineau DuMoulin, Carey and KPMG advised on the deal
Sumitomo Metal Mining Co., Ltd. (acting in a consortium with its partner, Sumitomo Corporation) on the acquisition of a 30 percent indirect interest in Compaia Minera Teck Quebrada Blanca S.A., which owns the Quebrada Blanca Phase 2 (QB2) project, from Teck Resources Limited for $1.2 billion.
The QB2 project is the second phase of the Quebrada Blanca copper mine in Chile.
The consideration payable by Sumitomo Metal Mining and Sumitomo Corporation consists of a $800 million earn-in contribution and a $400 million matching contribution made through a jointly held entity. Further supplemental payments will be made upon the mine achieving agreed throughputs and following a major project expansion.
The initial proceeds of the transaction will be used to fund construction of the project, with the first production targeted for the second half of 2021. The mine is expected to produce 316,000 tonnes per annum of copper equivalent in the first full five years.
Torys LLP advised Sumitomo Metal Mining, Co. Ltd. with Don Bell, Michael Pickersgill and Braden Jebson.
Mayer Brown advised Sumitomo Metal Mining, Co. Ltd. with a team including the head of the Africa and Mining practices Ian Coles (Picture), Corporate & Securities partner Rob Hamill (both London) and Satoru Murase (New York); Corporate & Securities partners Connor Cahalane, Rebecca Bothamley (both London) and Thomas Moore (Houston), senior associate Harriet Hainsworth (London), associates Stefania Alessi and Omar El-Khattabi (both London) and trainee solicitor Abbey Dalgleish (London); Banking & Finance partner Rachel Speight (London); and Construction & Engineering partner Jonathan Hosie (London).
In Chile, Philippi Prietocarrizosa Ferrero DU & Uria advised Sumitomo Metal Mining, Co. Ltd. with Juan Paulo Bambach, Carlos Alberto Reyes, Juan Jose Eyzaguirre, Ignacio Larrain and Cristina Olavarria.
Bofill Mir & Alvarez Jana Abogados advised Sumitomo Metal Mining, Co. Ltd. with Pablo Mir, Felipe Allende, Joaquin Perez and Esteban Fresno.
Fasken Martineau DuMoulin advised Teck Quebrada Blanca S.A. with Alison Lacy.
Carey advised Teck Quebrada Blanca S.A. with Rafael Vergara, Cristian Eyzaguirre, Francisco Corona, Maximiliano Urrutia, Giannina Veniu, Ignacio Alfaro.
KPMG advised Teck Quebrada Blanca S.A. with Rodrigo Stein.
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