London office advises Appian on US$230m financing to USSM

Global law firm Norton Rose Fulbright has advised investment advisor Appian Capital Advisory LLP (Appian) on a US$230m finance package to battery materials producer U.S. Strategic Metals (USSM).

Appian is an investment advisor to long-term value-focused private capital funds for mining and mining related companies. Building on its decade long track record in the sector, this transaction is consistent with Appian’s commitment to grow its credit and royalty offering, providing bespoke non-dilutive capital solutions to its partners.

The initial funding consists of a US$120 million secured term loan facility, along with a US$70 million secured royalty financing arrangement and warrants. USSM will use the financing to develop its cobalt-nickel mine and construction of its hydrometallurgical battery metals recycling facility based in Fredericktown, Missouri, United States. The facility will mine, process and recover battery supply chain critical materials including cobalt, nickel, lithium and copper.

The deal positions USSM to become the first significant fully integrated recycler and producer of battery metals for the electric vehicle supply chain in the United States.

The Norton Rose Fulbright team was led by London-based Partner Felicity Brown, supported by London-based Associate Chenez Dyer-Bray and a multi-disciplinary team that collaborated on the transaction. This included lawyers from across Norton Rose Fulbright’s US offices, including St Louis-based Partner Dani Davis, Counsels Alicia Kapolis and Senior Counsel Kevin Peterson on real estate property matters; Global Co-Head of Energy Noam Ayali and Senior Associate Francis McCabe (financing); Partner Andrew Rosenblatt (intercreditor); Partner Roy Goldman and Senior Counsel Patrick Narvaez (Corporate); Senior Counsel Kevin Prokup (Tax) and Counsel Bob Greenslade (Environmental).

Felicity commented:

“We are thrilled to have advised our long-standing client, Appian, on this innovative and energy transition-focused transaction, which is set to play a key role in the US battery metals and recycling market.

“We are pleased to have leveraged our teams and expertise across London and the US to support such an exciting project for the US metals market, in a deal which highlights Appian’s proficiency across both upstream mining and mining adjacencies. We look forward to seeing the results of this important financing and to working with Appian again in the future.”

With a combined team of over 1,500 lawyers across all practice areas, Norton Rose Fulbright has one of the largest and most prolific energy, infrastructure and natural resources teams of any law firm in the world. The firm’s lawyers have been at the heart of many of the world’s leading energy and infrastructure projects, including innovative and first-to-market transactions across a variety of sectors including LNG, nuclear, mining, power and utilities, and renewables.