Nyrstar NV closes El Toqui mine divestiture

On November 3, 2016 Nyrstar NV (“Nyrstar”), a global multi-metals business, completed its previously announced sale of the El Toqui mine in Chile to Laguna Gold Limited (“Laguna”) for total cash consideration of US$25 million and future proceeds through a price participation agreement. Nyrstar will have the opportunity to retain upside exposure to an improving commodity price environment by receiving additional cash proceeds through the price participation agreement (royalty) on the first 7.9 million tonnes of ore processed at El Toqui following the closing. In addition, Nyrstar and Laguna agreed to enter into an offtake agreement under which Laguna will sell to Nyrstar 100% of the zinc concentrate production from El Toqui for the initial four year period following the transaction and 85% of the zinc concentrate production from El Toqui after the four-year period is complete. The sale of the El Toqui mine in Chile is part of the formal sale process for all or the majority of Nyrstar's mining assets which was formally launched in January 2016. BMO Capital Markets Limited and Lazard GmbH acted as financial advisor to Nyrstar in connection with the sale process. Fasken Martineau advised Nyrstar on this transaction with a team that included Alex Nikolic, John Turner, Paul Fornazzari and Corum Van Esch.