Allens has advised Rio Tinto on its proposed sell-down and joint venture arrangements with Sumitomo Metal Mining Co., Ltd to deliver the Winu copper-gold project.
The Winu Project is a copper-gold deposit located in the Great Sandy Region of Western Australia, approximately 320 kilometres east of Port Hedland.
Under the agreements, Rio Tinto will continue to develop and operate the Winu Project, and SMM will pay Rio Tinto up to $430.4 million for a 30% equity share of the Winu Project. This includes $195 million up front and up to $235.4 million in deferred considerations contingent on future milestones.
The signing of definitive agreements follows the execution of a term sheet by Rio Tinto and Sumitomo in December 2024.
A cross-practice group team from Allens led by Partner Igor Bogdanich and Managing Associate George Salter, together with Partner Jodi Reinmuth, advised Rio Tinto on all aspects of the proposed sale and joint venture arrangements.
'We are thrilled to have supported Rio Tinto on the sell-down and joint venture arrangements in respect of the Winu Project. The signing of definitive agreements marks a significant milestone in the development of the Winu Project, and we congratulate both Rio Tinto and Sumitomo on reaching this milestone,' said lead partners Igor Bogdanich and Jodi Reinmuth.
'The Winu Project is a significant greenfield copper project, and will play an important role in meeting the supply demand driven by the energy transition. This transaction secures a pathway for the development of the Winu Project, and demonstrates that Australia remains an attractive jurisdiction for foreign investment. As copper demand continues to increase, and the gold price remains at record highs, we expect to see more M&A activity in this sector, particularly for high-class assets.'
