Cobalt 27 Capital will acquire all the issued share capital of Highlands Pacific. Cobalt closed an amended term loan for $100 million with National Bank of Canada as administrative agent.

“We are pleased to receive the approval of the National Court of Papua New Guinea and look forward to completing the acquisition of Highlands. We are also pleased to announce an amendment to our previously announced credit facility, which will provide Cobalt 27 with a reduction in stand-by fees and enhanced flexibility including the ability to increase the facility for the right cash-flowing acquisition opportunity from our extensive pipeline of investment opportunities,” said Anthony Milewski, chairman and CEO, Cobalt 27.

Cobalt 27’s amended term credit facility provides access to a $100 million credit facility and a $50 million accordion facility which replaces its undrawn credit facility.

National Bank of Canada, Bank of Montreal and The Bank of Nova Scotia acted as joint-lead arrangers with National Bank of Canada acting as sole bookrunner and administrative agent. The amended credit facility is secured by the company’s assets, including its physical cobalt inventory, its streaming and royalty investments, and the ordinary shares of Highlands to be acquired under the scheme. The amended credit facility has an initial term of three years, which is extendable by mutual consent of the lenders and Cobalt 27. An initial drawdown under the amended credit facility will be subject to the satisfaction or waiver of certain conditions precedent customary for a financing of this type.

Following the closing of the Highlands acquisition and the anticipated PanAust buyback agreement, the company expects to have drawn approximately $40 million under the facility, paying interest quarterly currently at a rate of LIBOR plus 375 basis points.