Investor Group acquires Niobec Mine from IAMGOLD Corp.

IAMGOLD Corporation (IAMGOLD) completed the sale of its Niobec Mine (Niobec), one of the world’s three niobium producers, for total consideration of US$530 million.

The buyer is a consortium comprised of Magris Resources Inc., CEF Holdings Limited, a Hong Kong-based investment company owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce, and Temasek, a Singapore-based investment company. On closing, IAMGOLD received a cash payment of US$500 million, with part of the purchase price being financed by senior credit facilities in favour of the buyer arranged by National Bank of Canada and The Bank of Nova Scotia, and provided by National Bank of Canada, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank, and Export Development Canada, as lenders. In addition, IAMGOLD is entitled to receive US$30 million when the adjacent rare earth element (REE) deposit goes into production and a 2% gross proceeds royalty will be payable on any REE production.  

Fasken Martineau DuMoulin LLP advised IAMGOLD with a team that included John Turner, Aaron Atkinson, Bradley Freelan, Jean Gagné, Martin Gagné, Martin Thiboutot and David Steinhauer (corporate/M&A); Alain Ranger (tax), Huy Do (competition), Michael Bourassa (mining), Andrew Nunes (IT), Jon Holmstrom (banking), Laurence Déry (labour) and Sébastien Roy (Intellectual Property).

Torys LLP represented  the buyer consortium with a team that included Ian Arellano, Ricco Bhasin, Jamie Becker, Chris Webb, Kevin Wall, Geoff Kelsall and Marc Soscia (corporate/M&A); Tom Zverina, Meno Tessema and Rémi Tremblay  (financing); Omar Wakil and Marina Chernenko (competition and Investment Canada); Ed Fan and Ebad Rahman (contracting), and John Unger and Saira Bhojani (tax). 

Davies Ward Phillips & Vineberg LLP acted for Temasek with a team including William Ainley and Brett Seifred (M&A) and Ian Crosbie (tax). 

Blake, Cassels & Graydon LLP represented National Bank of Canada, The Bank of Nova Scotia and the senior lenders with a team that included Simon Finch, Viorelia Guzun, and Jennifer Hancock (financial services).

Lavery de Billy L.L.P. acted as legal counsel for the Province of Québec with a team led by Mr. Sébastien Vézina (M&A and mining law) and Mr. Benjamin Gross (financing), and included René Branchaud (mining law), Nicole Messier and Carole Gélinas (real estate law and mining titles); Sophie Prégent (environmental law), Catherine Méthot and Raphaël Bacal (M&A); François Parent (pension and benefits); Catherine Maheu, Guy Lavoie and Valérie Korozs (labour and employement); Éric Gélinas (tax law), and Pierre Denis and Anne-Sophie Lamonde (financing). 

McCarthy Tétrault LLP represented the consortium of equity funds with a team consisting of Cameron Belsher,  Matthew Cumming, Pavan Jawanda, Oliver Borgers.