Golden Gate Capital has completed the acquisition of Canada Fluorspar, a specialty mineral resource company.
“Canada Fluorspar represents a unique opportunity to develop a world-class fluorspar producer,” said Rajeev Amara, a Managing Director of Golden Gate Capital. “We look forward to partnering with management to reestablish fluorspar production in Newfoundland and execute on the company’s strategy to become a reliable supplier of high quality fluorspar to global customers.”
Canada Fluorspar is a specialty mineral resource company located in St. Lawrence, Newfoundland, Canada engaged in the development of fluorspar deposits (www.canadafluorspar.com).
Fluorspar (also called Fluorite) is the mineral form of calcium fluoride. Fluorite is a colorful mineral, both in visible and ultraviolet light, and the stone has ornamental and lapidary uses. Industrially, fluorite is used as a flux for smelting, and in the production of certain glasses and enamels. The purest grades of fluorite are a source of fluoride for hydrofluoric acid manufacture, which is the intermediate source of most fluorine-containing fine chemicals. Optically clear transparent fluorite lenses have low dispersion, so lenses made from it exhibit less chromatic aberration, making them valuable in microscopes and telescopes. Fluorite optics are also usable in the far-ultraviolet range where conventional glasses are too absorbent for use.
“We are excited to work with Golden Gate Capital to accelerate development of the project,” said Lindsay Gorrill, CEO of Canada Fluorspar. Mr. Gorrill also said, “The work done to date has validated the potential of the deposits, and our talented team is excited to capitalize on the opportunity to commercialize these resources. Golden Gate Capital’s mining acumen, financial resources, and strategic vision for the project will enable Canada Fluorspar to become a sustainable platform for long term fluorspar supply.”
Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco (www.goldengatecap.com).
Other notable mining investments sponsored by Golden Gate Capital include US Silica, EP Minerals and ArrMaz.
Cormark acted as financial advisor; Arena Advisors advised on the transaction; and Stikeman Elliott acted as legal counsel to the special committee of Canada Fluorspar. Davies Ward Phillips & Vineberg served as legal advisor to Golden Gate Capital.
2014 PEPD • Private Equity’s Leading News Magazine • 5-30-14