Cobbetts acts for Highland Gold on fundraising

National firm Cobbetts has consolidated its relationship with AIM-listed Highland Gold after advising the Russian mining company on a deal with US mining giant Barrick Gold Corporation.

As part of the $50m (£27.5m) deal, Barrick and Highland Gold entered into an agreement to enable the former company to increase its stake in Highland Gold from 13.7 per cent to 20 per cent.

Under the agreement, Barrick will assist with financial and operational management at Highland Gold’s existing operations. Highland Gold plans to use the money raised from the deal to reduce short-term debt and fund its development programme. The companies are in the process of negotiating a joint venture agreement for the exploration of a project in Taseevoskoye, Russia.

Cobbetts corporate partner Simon Ledbrooke led the team advising Highland Gold. He also acted for the company on its initial admission to trading on AIM in 2002. At that time, Ledbrooke was a corporate partner at legacy firm Fox Brooks Marshall before its merger with Cobbetts in November 2003.

Ledbrooke told The Lawyer: “We acted on Highland Gold’s AIM flotation when we were introduced to the client in 2002 and it is rewarding to be involved in its development since then. Our experience in listing international mining companies on AIM is invaluable when working on these cross-border-listed business transactions.”