DLA Phillips Fox advises Toho Zinc on CBH investment

DLA Phillips Fox has advised Toho Zinc Co Ltd, a leading Japanese producer of zinc and lead, on its cornerstone investment in ASX listed, CBH Resources Limited (ASX:CBH).

The transaction involves Toho Zinc’s acquisition of a 50% joint venture interest in CBH’s Rasp zinc/lead deposit at Broken Hill, NSW for $57.5 million, an offtake agreement for the Rasp production, a $10 million equity investment in CBH and the early redemption by CBH of $37.6 million notes held by Toho for cash and CBH scrip. 

The transaction is a critical element of CBH’s ongoing recapitalization and funding strategy for CBH’s Rasp deposit at Broken Hill.

Brisbane- based partner Eugene Fung led the deal team assisted by partner, Lawrie Ward and solicitors Kelly Morrison and Jamie Kerr.

'The deal is an excellent outcome for both sides.  It paves the way for CBH to unlock significant value from its Rasp development, whilst substantially reducing its debt and it secures for Toho the zinc and lead production from Rasp for the life of the mine' Mr Fung said.

For more information contact:

Eugene Fung, Partner
P: +61 7 3246 4048
E: eugene.fung@dlaphillipsfox.com

Clare Buttner, Media Relations Consultant
P: +61 415 932 936
E: clare.buttner@dlaphillipsfox.com