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Hunt mining Corp. / Patagonia Gold plc
Recommended, all Canadian share, offer for Patagonia Gold plc via a scheme of arrangement by Hunt Mining Corp.
£17.2m
Background
In late 2018, Strand Hanson was appointed as Financial Adviser and Rule 3 Adviser under the City Code on Takeovers and Mergers (the “Code”), alongside its pre-existing Nominated Adviser and Broker roles, to Patagonia Gold plc (“Patagonia Gold” or the “Company”) to advise the Company in relation to a recommended all share offer for the entire issued and to be issued share capital of the Company by Hunt Mining Corp. (“Hunt”), pursuant to a scheme of arrangement (the “Offer”). The Offer was subject to the requirements of the Code and the relevant TSX-V rules.
Hunt Mining is a TSX-V listed mining company with interests in Argentina in geographical proximity to Patagonia Gold’s portfolio. The Offer process involved a concurrent TSX-V reverse takeover process (the “RTO”), with the enlarged Hunt group (renamed Patagonia Gold Corp.) resuming trading on the TSX-V following completion of the Offer in July 2019.
Our role
Strand Hanson assisted Savannah with all the typical workstreams associated with a reverse takeover transaction on AIM, including pertinently the organisation of numerous parties across several countries. Due to the complex nature of the Transaction, with the numerous conditions of the Acquisition affecting the timetable, as well as the development of the structure of the Acquisition over time, post signing of the SPA and publication of the initial AIM admission document, Strand Hanson played a key role in the coordination of and communication with the various stakeholders. Strand Hanson supported the Company in negotiations and ensured that it complied with various regulatory requirements and made appropriate market disclosures, including the publication of the supplemental admission document in respect of the Acquisition following the changes to the transaction structure.
Subsequent Transactions
In 2022, Savannah completed its acquisition of ExxonMobil’s entire midstream asset portfolio in Cameroon, including a c. 41% interest in Cameroon Oil Transportation Company S.A. (“COTCo”), constituting a further reverse takeover transaction under the AIM Rules.
COTCo owns and operates the 903km Cameroon section of the Chad-Cameroon export pipeline, the Kome Kribi 1 floating storage and offloading facility, and related infrastructure. The pipeline has a 250 Kbopd nameplate capacity and is the only international export route for oil production in Chad. During 2022, COTCo transported an average of 124 Kbopd of crude oil valued at an estimated US$4.6bn at the prevailing Brent crude oil prices.
In 2023, the Company sold a 10% interest in COTCo to the national oil company of Cameroon, Société Nationale Des Hydrocarbures, giving Savannah a resultant interest in COTCo of c. 31%.
Savannah’s renewable energy division is developing up to 525 megawatts of hydroelectric, solar photovoltaic and wind projects in Cameroon and Niger, leveraging its existing presence in-country.