Livingstone’s Industrial team has advised the shareholders of Incremento Grupo Inversor, S.L. on an innovative deal combining a growth recapitalisation and a commercial agreement with US-based Global Tungsten & Powders Corp.
Located in Galicia in North West Spain, Incremento invests in mining and quarrying operations and is the owner of two tungsten mines, one of which is the San Finx mine in the province of Lousame, which was the first mine in Europe to extract tungsten, and also contains large reserves of tin. The two mines both had well-invested existing infrastructures but were not being actively worked. Livingstone worked with Incremento to identify potential customers for its tungsten output to unlock the finance to recommence mining activity.
With its headquarters in Towanda, in Pennsylvania, GTP is a leading, global producer of tungsten, molybdenum and phosphors produced in the form of ammonium paratungstate, powders, rod, wire and other fabricated products. Following a comprehensive global search, the Livingstone team identified GTP as the best strategic partner for Incremento, made the initial overture and assisted in the negotiations. Through the agreement between the two parties, GTP offers Incremento significant security, providing guaranteed sales of tungsten on a long-term basis. Completion of the deal has resulted in the immediate reopening of the mines.
Neil Collen, Partner at Livingstone Madrid, said: “The deal was very challenging as our client required financing linked to a guarantee of purchase of its product. It was a global transaction as we contacted European, North American and Chinese groups, and we are delighted that our clients found the security they were searching.” He added, “GTP has secured an excellent deal considering that tungsten prices have been increasing due to market shortage.”