Dannemora Iron Ore Project / Dannemora Mineral AB

Endeavour advised Dannemora on the financing of the US$139 million Dannemora iron ore project in Sweden. The project was the restart of a former producing mine that closed in the 1990's. The financing was only the third ever greenfield project bond where bondholders took construction risk.


 Comprehensive advisory role including:
  • Reviewing financing plan, contractual structure, technical work
  • Advice on offtake contracts
  • Negotiation with bond managers
  • Negotiations with European lending institutions in parallel to bond solution
  • Financial modelling, term sheet and documentation negotiations
 
  • Junior company sponsorship
  • New entrant into debt market
  • Bond market unpredictable as to its availability
  • Offtake progress was slow; delaying the bank financing route
  • Additional technical work was undertaken to ensure the technical review met international banking standards
 

 

 
  • Bank financing route progressed in parallel to bond financing (bank presentations; modelling; term sheet negotiation)
  • Comprehensive cost-benefit analysis of bond versus bank route; presentation to sponsor board
  • Bond route did not require offtake arrangements to be finalised due to education of bond manager/investors with respect to progress (trial shipments; LOIs etc)
  • Extensive preparation of due diligence including lender-ready independent review
  • Protection for investors for cost overrun risk achieved without compromising benefits to sponsor of favourable covenant structure
 
 

Key Contacts

George Pyper

Director

Paul Mainwaring

Vice-President

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