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Herbert Smith Freehills has advised ANZ, BNP Paribas and Westpac on a A$150 million debt financing package for the development of Dacian Gold Limited’s Mt Morgans gold project in Western Australia.

Located in the Goldfields approximately 750km northeast of Perth, construction for the A$220 million Mt Morgans project is due to start in early 2017, with first production scheduled for the March 2018 quarter.

The Herbert Smith Freehills team advised on all aspects of the financing and was jointly led by partners Andrew McLean and Rowen Cross who were supported by senior associate Nicolas Hemelaar and solicitor Rachael Le Tessier.

Mr Cross said the agreement between the lenders and Dacian Gold followed an extensive due-diligence process which saw lawyers across the firm provide expertise in a range of areas including construction, native title and land access.

“Our expertise on key issues ensured a thorough due diligence process which helped the lenders get comfortable with the deal in a very compressed timetable. We were delighted to advise ANZ, BNP Paribas and Westpac on this debt financing package and ensure a successful outcome for all three lenders and Dacian Gold,” Mr Cross said.

Andrew McLean said the project was a sign of renewed optimism in the WA mining sector. “It will be fantastic to see this project begin construction and reach production stage. It’s testament to the quality of the project, as well as Dacian management and the bankers involved, that the deal was done so efficiently.

“After a significant downturn, this project is one of a number of recent positive signs that the WA resources sector is recovering,” Mr McLean said.

Wright Legal were the legal advisers to Dacian Gold Limited.

This deal is another example of Herbert Smith Freehills’ market-leading work in the project financing sector.