21 November 2014

Mishcon advises African Eagle Resources PLC on its reverse takeover of Lime-Chem Resources (Proprietary) Limited

Mishcon's Corporate team advised African Eagle Resources PLC ("AER"), a company trading on the AIM market of the London Stock Exchange and the Alternative Exchange (Alt-X) of the Johannesburg Stock Exchange, on its entry through a wholly owned subsidiary into a conditional agreement to acquire Lime Chem Resources (Proprietary) Limited ("LCR"). LCR is a company incorporated and trading in the Republic of South Africa. 

LCR owns mining rights over the Rooinekke property, located in the Northern Cape province of South Africa, approximately 180 kilometres south of the Sishen Iron Ore Mine.  It consists of an old open pit mine with numerous crushed ore dumps surrounding the pit.  If the proposed acquisition completes, AER intends, in the short term, to process the ore dumps while it assesses the feasibility of re-commencing mining at Rooinekke.

The proposed acquisition will constitute a reverse takeover under the AIM Rules for Companies and will be subject to shareholder and regulatory approvals.  The proposed acquisition also further cements Mishcon's growing reputation as a capital markets specialist.  Mishcon has advised on seven IPO's and secondary fundraisings on the London markets in the past 18 months. Mishcon has been advising entrepreneurial investors into Africa for over 20 years.

The Mishcon team advising on the proposed acquisition is being led by Nick Davis, Head of Corporate, with support from: Saul Sender, Partner, Corporate and Head of Mishcon's Africa Group; Shantanu Sinha, Associate, Corporate; and Pippa Williamson, Solicitor, Corporate.

Saul commented: 'We are delighted to have advised African Eagle on this transformational transaction and look forward to its closing in the new year.  Our African practice continues to grow as clients welcome the benefit of our experience. Doing business in Africa offers unique opportunities and challenges, that require a deep understanding of the political and regulatory context, something we can provide.' 

Through its work in Africa, Mishcon has developed a practice assisting African and Africa-bound clients as they expand their horizons beyond their respective continents.