Mount Kellett co-founder Jason Maynard said, "We have invested on the expectation that Masan Resources will ultimately become the leading resources platform in Vietnam and Indochina ."
Masan Resources currently holds 100-percent ownership of the Nui Phao Mine. With approximately 55.4 million metric tonnes of proven and probable reserves of tungsten, fluorspar, bismuth and copper, the mine was expected to begin operations in January of next year and, once fully operational, generate over 300 million USD in revenues per year.
Upon completion of the current deal, Mount Kellett would hold a 20-percent stake in Masan Resources, while Masan Group would retain 64 percent and Tiberon Minerals Pte Ltd 16 percent. Masan Group has a call option to buy Tiberon's stakes over the next three years for approximately 60-90 million USD.
Masan Group also has obtained an eight-year senior-secured lending facility with the Vietnam Development Bank worth 120 million USD, significantly de-risking its position in the Nui Phao Mine. Full financial closure was expected by the end of the first quarter, with remaining funding to come from domestic banks and financial institutions. Total investment in the mine was expected to reach 440 million USD, of which 155 million USD has already been invested.
JP Morgan is serving as sole advisor to Masan Group on the Mount Kellett transaction. /.
