• London
  • Vancouver
  • Camana Bay

US$442mTransaction amount

Kupol Gold Project / Bema Gold

Structure and arrangement of project financing for the development of the Kupol gold mine in Russia.

Background

Endeavour advised Bema Gold on the project financing of the Kupol gold mine in Russia. It was the third Endeavour-advised financing for Bema (Refugio; Julietta) and the largest mining project finance to date in Russia.

Comprehensive role advising the project sponsor including:
  • Developing financing plan, contractual structure
  • Financial modelling, term sheet and documentation negotiations
  • Negotiations with third party finance providers
  • US$150 million bridge finance during feasibility study
  • US$442 million project finance including equipment, DFI, IFC and commercial bank tranches
  • Government negotiations on contract

Key Contacts

David Rhodes

Managing Director


Challenges

  • Junior sponsor issues
  • Country risk
  • Sponsor (Bema) only owned 75% of project
  • Co-ordination of multiple financing sources
  • Logistics and climate

Solutions

  • Negotiated bridge financing from senior lead bank
  • IFC A-loan plus enhanced debt gearing through subordinated IFC C-loan
  • MIGA political risk cover for commercial lenders and sponsor equity
  • Separate negotiations with different lenders and other sources of finance based upon Endeavour term sheet
  • Logistics study, working capital analysis and early IE appointment to sign-off

Case Studies

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Kwale Mineral Sands Project / Base Resources

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Kupol Gold Project / Bema Gold

Structure and arrangement of project financing for the development of the Kupol gold mine in Russia.

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