The challenge
Palladium is typically produced as a by-product of the mining of other PGM-complex minerals. In South Africa and Zimbabwe (where most of the world’s known reserves are found), platinum is the more prevalent metal, and it is generally not possible to scale up palladium production in isolation.
With increases in demand for palladium, and an industry unable to respond quickly to increase supply, the palladium price had shot up to levels more than double those of platinum. Impala spotted an opportunity to acquire NAP – a primary palladium producer – to increase the proportion of palladium in its production mix and to diversify geographically.
The RMB solution
RMB has had a long-term relationship with Impala and was an obvious choice as finance partner in the acquisition. To drive Impala’s growth story and Canadian presence, RMB provided part of the $350-m bridge funding used to pay for the NAP acquisition. RMB also helped to raise the $275-m term funding solution for NAP in Canada that was used to settle part of the bridge financing.
Impala Canada now owns and operates the Lac des Iles Mine (Lac des Iles) northwest of Thunder Bay, Ontario, and has a shareholding in two exploration properties: the Sunday Lake project and the Shebandowan Joint Venture.
RMB, as arranger for the bridge funding and mandated lead arranger and lender on the term funding, was pivotal in delivering a successful transaction for the client in order to expand their offshore operations. The RMB team's risk view furthermore enabled Impala to continue their growth in challenging conditions within the mining sector.
Proven client results
The ownership of Impala Canada strengthens Impala’s competitive position by providing geographical diversification into a low-risk jurisdiction, as well as adding a primary palladium mine to their portfolio that allows them to better meet market demand.
The Lac des Iles Mine immediately boosted Impala’s value and strengthened cash flow to advance the group’s journey towards delivering sustainable shareholder returns. This acquisition enabled Impala’s growth and robustness, both in the current landscape and into the future.
| Client | Impala Platinum Holdings |
|---|---|
| Deal value | $275-m |
| Sector | Mining |
| Capabilities | Offshore resource finance |
| RMB's role | Arranger for bridge funding, mandated ead arranger and lender on term funding |
| Countries | SA and Canada |
