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02 Feb 2011

Clayton Utz advises Regent Pacific on BC Iron acquisition

Perth, 2 February 2011: Clayton Utz has acted for Hong Kong Stock Exchange listed diversified mining group Regent Pacific Group Limited (Regent Pacific) on its bid for Australian junior iron ore miner BC Iron Limited (BC Iron), to be implemented by scheme of arrangement. The transaction was announced on 21 January.

Perth M&A / E&R partner Heath Lewis is leading the Clayton Utz team advising Regent Pacific, which includes senior associate Brett Cohen and lawyer Francesca Coli, and which is working closely with the Hong Kong office of Linklaters on acquisition financing, and with Standard Chartered Bank as financial adviser to Regent Pacific.

Commenting on the transaction, Heath Lewis said: "This is a significant deal for Regent Pacific as its successful implementation would significantly contribute to Regent's strategy of becoming Hong Kong's next major mid-tier mining house focused on bulk commodities, base metals and gold in the Asia-Pacific region. It is further validation of the theory that Australian resources and resource projects remain attractive investment propositions for overseas investors, notwithstanding the strong Australian currency, and that Perth, Western Australia maintains its eminence in the world-wide energy and resources scene."

Currently a 19.9 per cent shareholder, Regent Pacific has made an all cash offer of $3.30 per BC Iron share to acquire all remaining shares in BC Iron, valuing the company at approximately $345 million.

Regent Pacific's operations are focused on the Asia Pacific region. It explores for and mines copper, zinc, gold, silver, lead and coal. BC Iron Limited is an emerging iron ore producer based in Western Australia’s world-class Pilbara region.

Mr Lewis said this blue-chip instruction for Regent Pacific was an encouraging continuation of the cross-border transaction trend for the Clayton Utz deal team across a range of commodities, following recent roles advising Anatolia Minerals Development Limited in respect of its "merger of equals" with Avoca Resources Limited to create a circa $2 billion gold enterprise, and advising Talison Lithium Limited on its $350 million merger with Salares Lithium Inc and contemporaneous capital raising and listing on TSX.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.