09 March 2017
Longstanding Gowling WLG client Bacanora Minerals has acquired a 50% stake in SolarWorld Solicium GmbH in a joint venture with SolarWorld AG.
Bacanora, a Canadian-incorporated company, which is admitted to trading on both AIM and the TSX, utilised the experts of Gowling WLG's UK and German offices to negotiate the deal. UK partner Charles Bond and principal associate Samantha Myers worked closely with partner Andreas Woelfle in Germany to agree the acquisition and joint venture documentation with SolarWorld's board and legal counsel.
Dr Thomas Schoenfeld and Dr Matthias von Oppen, partners at German firm Lutz Abel, provided additional advice on mining and administrative law aspects and the team also had to secure agreement on all aspects of the joint venture from SolarWorld's Qatari investors.
The EUR10 million deal secures 50% of the Zinnwald lithium project in return for a EUR5 million cash consideration and a further EUR5 million towards the cost of a feasibility study over the next 18-24 months. Bacanora also has an option to acquire the other 50% of the project within two years for an additional EUR30 million.
Shares in Bacanora Minerals increased by 6 per cent after it announced the acquisition of the lithium exploration asset in southern Saxony, Germany.
Partner Charles Bond said: "The deal, which was signed on 17 February 2017, is a very significant step for Bacanora and we're extremely pleased to have helped them over the line with this joint venture acquisition, especially considering the jurisdictional aspects and working across regions. Their next step will be to produce a feasibility study into lithium deposits at the site."
Partner Andreas Woelfle added: "This was a great example of Gowling WLG's cross-border, cross-sector offering, with the UK team providing accurate drafting and negotiation and the German team double-checking the documentation with a view to German law. The result is an excellent acquisition for a long-term client."