Highlights Harte Gold
– Appian has successfully divested its credit and royalty positions in Harte Gold to Silver Lake Resources
– Transaction comprises US$22.0m in Silver Lake shares for Appian’s 2.0% net smelter return royalty and repayment of its subordinated credit facility for US$33.4m in cash for a 15% premium, as well as other fees and expenses
– Demonstrates Appian’s ability to deliver successful outcomes for its investors and invest through the capital structure to generate risk-adjusted returns
– Following the exit, Appian will continue to focus on future facing commodities balanced by precious metals exposure across equity, credit and royalties
Appian Capital Advisory LLP
Appian Capital Advisory LLP (“Appian” or the “Company“), the investment advisor to long-term value focused private equity funds that invest solely in mining.
And mining-related companies, is pleased to announce that it has divested its 2.0% net smelter return royalty (the “Royalty”).
Its subordinated credit facility (the “SCF”) in Harte Gold to Silver Lake Resources (“Silver Lake”), representing a positive outcome for Appian’s investors.
Under the terms of the transaction, Silver Lake will acquire the Royalty for US$22.0m in Silver Lake shares, following Appian’s original acquisition in December 2019 for US$9.5m.
Silver Lake will also purchase the SCF for US$33.4m in cash, which represents a 15% premium to Appian’s principal investment of US$28.0m in July 2020.
This includes the US$28m principal, a 115% early redemption charge of US$4.2m, US$1.2m in accrued interest and an additional ~US$680,000 to cover technical consulting and legal fees.
The success of the transaction is the result of Appian’s active engagement with Silver Lake following Harte Gold’s entry into creditor protection on 7 December 2021, following which Silver Lake was ultimately named as successful bidder for the company.
Michael W. Scherb, Founder and CEO of Appian, commented:
“This transaction represents a successful outcome for Appian and its investors, allowing us to secure a premium on our credit and royalty investments.
The positive result demonstrates the strength of Appian’s model and its ability to invest through the capital structure, coupled with its capacity to actively manage investments to generate risk-adjusted returns.
We have recently taken steps to strengthen our credit and royalty offerings, and look forward to our continued growth as the world’s leading private investor in the metals and mining sector.”
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia.
And Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 54 experienced professionals with offices in London, Toronto, Lima, Belo Horizonte, Montreal and Sydney.
Source: Appian Capital Advisory LLP
