Pace Global

PPA Gold Mine

Clien Need
Client Need:
A global gold mining company required a commercial advisor to lead negotiations for a long-term Power Purchase Agreement (PPA) to supply a new mine.


Our Role
Our Role:
Pace Global was retained by the client to structure and negotiate the terms of the PPA. Pace Global solicited interest from independent power producers active in the region, selected the most qualified development partner and initiated the structuring of commercial terms to close on the PPA terms which triggered the construction of a new gas-fired combined cycle plant to supply the mine. Pace Global developed a term sheet that outlined the commercial structure of the deal and provided initial pricing terms which was used to develop the full PPA. Pace Global worked closely with our client and their legal counsel through the negotiation process for the PPA. Pace Global supported the structuring of commercial terms that met the clients desired risk profile, validated key technical and cost assumptions in the agreement, and developed a shadow pro forma of the project to model the developer’s economics and understand the allocation of value from the proposed facility.


Results
Results:
The PPA has been executed and the project is in construction due to come online in 2015.
Pace Global