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BCLP advises Vision Blue Resources on mining investments

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Global Mining Review,

Bryan Cave Leighton Paisner (BCLP) has advised Vision Blue Resources Ltd (VBR), a newly created battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), on both its US$29.5 million investment in NextSource Materials and its, up to, US$12.6 million investment in Ferro-Alloy Resources Ltd (FAR).

NextSource Materials is a mine development company based in Toronto, Canada. The US$29.5 million Financing Package will fully fund the construction of the company’s Molo graphite mine in Madagascar and will be completed in two tranches. The first tranche comprises an initial non-brokered, private placement equity investment of US$6.1 million (CAN$7.8 million) which has completed, while the second tranche of the financing package will be completed through an additional private placement for additional gross proceeds of US$12.4 million. The parties have also entered into a secured royalty agreement, pursuant to which VBR will advance, subject to the satisfaction of certain conditions, a total of US$11 million in exchange for a royalty in respect of sales of SuperFlake® graphite concentrate from the Molo Graphite Project. Additionally, Sir Mick Davis has been appointed Chairman of NextSource Materials.

Sir Mick commented: “Our initial investment is just the first in unlocking Molo’s potential and it is our intention to help create a major battery materials producer on a global scale. We are pleased to support its growth to realise its value for all investors and stakeholders.”

FAR is a vanadium mining and processing company listed on the Main Market of the London Stock Exchange with operations based in Southern Kazakhstan. FAR is developing the very large Balasausqandiq Vanadium project which benefits from access to excellent infrastructure and has the potential to become one of the lowest cost producers of vanadium globally. VBR will make an initial investment of US$3.1 million alongside a limited number of co-investors including Tony Trahar, former CEO of Anglo American plc and a former Director of Highveld Steel and Vanadium – which was at one point in time the largest producer of vanadium in the world. Following the initial investment VBR has the right to make a further investment of up to US$9.5 million, resulting in a total investment by VBR of US$11.5 million.

Sir Mick Davis said: “This is Vision Blue’s second investment following launch last month and clearly illustrates how we are rapidly building momentum. The Ferro Alloy Resources investment case is compelling, has an attractive risk profile and many qualities that are difficult to find in other mining investment opportunities.”

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