We were retained by counsel to the majority shareholder in a shareholder dispute involving the method of financing the remaining construction costs of one of the world’s largest copper mining projects. We performed an analysis of the financial and valuation impact to the shareholders of different financing proposals which included various forms of debt (term debt, bonds, and streaming arrangements) and/or equity. The total financing required for the project was in the range of $2-3 billion.
Our analysis involved a qualitative and quantitative assessment of the financing proposals, an analysis of the appropriate capital structure for the project, and an assessment of the financial impact of each proposal on the valuation of the company and of the shares held by different shareholder groups.
Our opinion was required in the context of arbitration.