Clayton Utz advised Gindalbie Metals Limited on the deal Norton Rose Fulbright advised Ansteel Group.
Gindalbie Metals will be purchased by in a deal worth around US$25 million after demerging its subsidiary Coda Minerals to the shareholders.
The target firm has struggled to turn a profit at its Karara magnetite iron project in Western Australia in recent years and had outstanding debts of $231 million at the end of 2018.
Gindalbies demerger of Coda is intended to allow the subsidiary to benefit from exploration opportunities at the Mt Gunson copper-cobalt project in South Australia without exposure to its parent companys significant contingent liabilities, according to Gindalbie.
The transactions will be implemented by way of two inter-conditional schemes of arrangement.
Clayton Utz advised Gindalbie Metals Limited with a team including corporate partner Mark Paganin (Picture) and special counsel Stephen Neale with key support from lawyers Benjamin Depiazzi and Matthew Johns.
Law Firms: Clayton Utz;
Clients: Gindalbie Metals Ltd;