Case Studies

Kupol Gold Project / Bema Gold

Structure and arrangement of project financing for the development of the Kupol gold mine in Russia.

US$442m

Transaction Amount

Background
Challenges
Solutions

Endeavour advised Bema Gold on the project financing of the Kupol gold mine in Russia. It was the third Endeavour-advised financing for Bema (Refugio; Julietta) and the largest mining project finance to date in Russia.

Comprehensive role advising the project sponsor including:

Developing financing plan, contractual structure
Financial modelling, term sheet and documentation negotiations
Negotiations with third party finance providers
US$150 million bridge finance during feasibility study
US$442 million project finance including equipment, DFI, IFC and commercial bank tranches
Government negotiations on contract

Junior sponsor issues
Country risk
Sponsor (Bema) only owned 75% of project
Co-ordination of multiple financing sources
Logistics and climate

Negotiated bridge financing from senior lead bank
IFC A-loan plus enhanced debt gearing through subordinated IFC C-loan
MIGA political risk cover for commercial lenders and sponsor equity
Separate negotiations with different lenders and other sources of finance based upon Endeavour term sheet
Logistics study, working capital analysis and early IE appointment to sign-off

Key Contact

David Rhodes

Managing Director