A central and pivotal role when Grangex acquires Sydvaranger Mining AS
“Synch was pivotal in negotiating this transaction. Managing not only the purchase but also extending deadlines, securing finances, and ensuring a coherent contractual complex of enormous scale, ” says Christer Lindqvist, Chief Executive Officer of Grangex.
Grangex is a mineral development company that seeks to identify, acquire, and develop strategic mineral assets that enable the global energy transition. Creating a more sustainable society is a guiding principle.
The next step in becoming a power-house in the “green steel revolution”
The negotiations to acquire Sydvaranger Mining AS, which was initiated in early 2023, took ten months and involved several parties. These included Grangex, OMF Fund II H Ltd (“Orion”) and the British multinational mining company Anglo-American, who are financial partners of Grangex. Throughout this, Synch was the negotiating body representing Grangex, managing all the necessary documentation and keeping track of the multitude of cross-references in the legal documentation and the contractual agreements between the parties. Due to the complex nature of the transaction, the Stop Dates had to be re-negotiated several times, something the team at Synch was also deeply involved in.
“The proactive approach and legal know-how of the team at Synch was crucial to the success of this transaction. Being not just a counsellor but an active party meant they could coordinate the various aspects of the negotiations, handle all issues orderly and transform the agreements into legal documents. This transaction has made Grangex a large international producer of fossil-free, ultra-high-grade magnetite concentrate – a product in very high demand worldwide”, says Christer Lindqvist, Chief Executive Officer of Grangex.
The legal collaboration predates both Grangex and Synch
Jim Runsten, CEO at Synch, and Christer Lindqvist, CEO at Grangex, have known each other for many years and worked extensively on several mining projects. When Christer started Grangex he was looking for a legal partner and immediately contacted Jim who agreed to be a part of Grangex’s journey.
“Knowing Jim and his capacity, involving Synch as our legal counsel, felt self-evident. I am happy that he was eager to work with us. Having Synch as our single point of contact allowed us to keep an overview of all the moving parts in this negotiation”, says Christer Lindqvist
"The collegial relationship fits very well with our network-based business model. It's the perfect symbiosis"
Representatives from Grangex have visited Synchs' office several times, especially during the very intense 2.5-month period leading up to finalising the transition. During their many meetings, they have come to know one another, and their close relationship is a foundation for their effortless and efficient collaboration now.
"Having worked in the mining industry for many years, I have come to prefer a networking approach to driving businesses", says Christer Lindqvist and continues: "Not many understand this business model, but with Synch, there was no friction. This meant we could solve problems together without clarifying the prerequisites. It has made our collaboration both equal and efficient."
Synch – from start to exit and beyond
Having worked very intensely for almost a year to finalise the transaction, Grangex is impressed with Synch's commitment to this project.
"Even though Synch is an external advisor, that's not how anyone at Grangex or I view them. The Synch team is a part of our core team and will continue to be a vital part of our operations in the foreseeable future. I could not ask for a better legal partner", says Christer Lindqvist.
