Linklaters advises Sibanye-Stillwater in Spinoff of Aldebaran Resources

The strategic partnership will focus on Altar copper-gold project in Argentina

Linklaters has advised the mining company Sibanye-Stillwater in a transaction that will lead to the formation of Aldebaran Resources.

Sibanye Stillwater and Regulus Resources entered into an arrangement agreement to spin out Regulus’ Argentine assets, including the Rio Grande and Aguas Calientes projects to form Aldebaran Resources. Aldebaran’s primary focus will be on the Altar copper-gold project in Argentina, where it has entered into an option agreement to acquire up to an 80% working interest from Sibanye-Stillwater through a combination of cash payments, share issuances and project expenditures.

The consideration to Sibanye-Stillwater, for Aldebaran’s option to acquire up to an 80% interest in the Altar Project, comprises:

An upfront cash payment of US$15 million to Sibanye-Stillwater

  • 19.9% of the shares of Aldebaran, subject to proration if the initial financing raised by Aldebaran exceeds US$30 million (up to a maximum of $40 million)
  • A commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years (inclusive of 2018 drilling that was conducted between February and May of this year) as an initial earn-in of a 60% interest in the Altar Project.
  • Aldebaran may also elect to earn into an additional 20% interest in the Altar Project by spending an additional US$25 million over a three-year period following the Initial Earn-in.

The Linklaters team was led by New York-based corporate Partner Peter Cohen-Millstein alongside tax Partner Andrew Morris and Senior U.S. Associates Zach Caldwell and J.R. Neuville.