• London
  • Vancouver
  • Camana Bay

US$858mTransaction amount

Boleo Copper Project / Baja Mining

Structure and arrangement of project, equipment & offtaker financing for the development of the Boleo copper mine in Mexico.

Background

The largest single-asset junior sponsored mine project financing anywhere to date. Endeavour advised Baja Mining on the introduction of a joint-venture partner to co-develop the US$1 billion Boleo copper project in Mexico.

A 30% stake in the Boleo project was sold to a consortium of Korean offtakers. Endeavour’s involvement included valuation, documentation and running the sales process.

Comprehensive role advising the project partners including:
  • Developing financing plan, contractual structure
  • Negotiations with partners & offtakers for disposal and finance
  • Negotiations with third party finance providers
  • Extensive ECA and bank negotiations including US-Exim, EDC, KDB, K-Exim
  • Financial modelling, term sheet and documentation negotiations

Key Contacts

George Pyper

Managing Director


Challenges

  • Junior sponsor issues
  • Perception of challenging metallurgy
  • Large financing requirement during challenging commodity, debt and equity markets
  • Co-ordination with Korean JV partners
  • Minimise dilution for Baja Mining

Solutions

  • Enhanced credit support through JV partner and tied financing from ECA/DFI-led “club”
  • Separate negotiations with different ECAs and other sources of finance based upon Endeavour term sheet
  • Early appointment of Independent Engineer assisted in negotiations and helped address technical risks
  • Innovative convertible LC structure to cover Baja’s share of potential cost overruns
  • Management and co-ordination of agenda, timetable and discussions

Case Studies

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Structure and arrangement of project, equipment & offtaker financing for the development of the Boleo copper mine in Mexico.

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