Global law firm White & Case LLP represented China Development Bank (CDB) in its financing of Perilya Canada Limited's US$183 million acquisition of GlobeStar Mining Corporation. Perilya Canada secured a financing package of up to US$100 million from CDB and funded the remainder of the acquisition through existing cash resources. The deal was relatively complex in that it was a privatization by friendly takeover of the public company by way of a public offer.
Perilya Canada is a wholly owned subsidiary of Australia-based Perilya Limited. Perilya Limited, an ASX listed company (ASX: PEM), is 52 percent owned by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, the fourth-largest zinc smelter in China.
"This acquisition continues the trend of Chinese companies investing in natural resources to fuel the country's growing economy," said Xiaoming Li, head of White & Case's China practice.
GlobeStar, based in Ontario, Canada and listed on the Toronto Stock Exchange, operates the Cerro de Maimón mine in the Dominican Republic. The mine was forecast to produce approximately 21 million pounds of copper, 17,000 ounces of gold and 500,000 ounces of silver in 2010.
The White & Case team was led by Xiaoming Li, who served as lead counsel to CDB. He was assisted by partner Baldwin Cheng, associates Xin Wang, Geehou Tng and Jessie Chong and legal consultant Jianbin Wang.
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