• Save
Mining international - Financing and fundsraising
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Mining international - Financing and fundsraising

  • 398 views
Uploaded on

How to attract foreign investors to finance mining projects during the different stages of the mine. How to identify the right mining project for the investor and to get the financial closing done.

How to attract foreign investors to finance mining projects during the different stages of the mine. How to identify the right mining project for the investor and to get the financial closing done.

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
398
On Slideshare
398
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Fundraising for mining start-ups
  • 2. Fundraising for mining start-ups from the investors and mining entrepreneurs perspective • Mining projects are capital-intensive and a mining start-up is seen as a very risky venture, which makes investments in early-stage projects somewhat difficult. These factors pose challenges to mining entrepreneurs when they seek to raise seed capital for their mining project. • This presentation gives a short and incomplete overview about structural issues how to ✓get the exploration phase be financed by an investor ✓get the mine be developed by an investor, ✓agree on a joint venture during the exploitation phase, and ✓identify high-quality operations and projects with attractive valuations. • but also how to identify and select a favorable junior mining project to provide it with financing and other support. • This presentation will not be applicable without adjustments to the local jurisdiction, factual situation and industry practice. Please ask PUGNATORIUS for specific advice and assistance on your individual mining project.
  • 3. Overview about the very simplified structure of a mining project Joint venture agreement Investor Entrepreneur 
 (Project-) Lease, Financing purchase Please see the complete version Employment, License, etc of this PUGNATORIUS white paper at freelance Sales http://www.scribd.com/doc/54425239
 agreement Delivery Geology Claim owner Local integration Engineers / workers Off-site infrastructur Bank Suppliers Project entity Mining Processing Environment Buyer / broker Development Government Market price Marketing
  • 4. Getting a mining project fit for the financing requirements of the investors • Financing by shares - going public ✓Setting up public company in the home jurisdiction ✓Setting up a public company in another mining country ✓Setting up an offshore company • Financing by venture capital company ✓General return on investment requirements ✓Specific VCC requirements • Financing by banks ✓Identify appropriate banks ready to finance a mining project ✓Dressing up the bride: corporate and technology PR to support bank financing • Financing by a joint venture with a big mining company ✓Marriage made in heaven ... ✓... or sleeping with the enemy
  • 5. Involvement of an investor during the different stages of the mine Prospecting Area selection Pre-feasibility for resources Sponsor Reconnaissance license(?) Searching a district for mineral deposits Type A investor to finance the acquisition of the mining concessions, the drillings to test and prepare the ground, the purchase of equipment and the employment of professionals 
 Please see the Feasibility study Exploration team Exploration license complete version Exploration Location selection for reserves of this PUGNATORIUS white paper at http://www.scribd.com/doc/54425239
 Development Systematic examination of a deposit Type B investor to develop the mine Exploitation Reclamation Mine in operation Verifiable in-ground assets Mining operator Type C investor for junior mining companies Legal framework
  • 6. Typical stumbling blocks for the successful financing of junior mining projects Are there any data from drillings during recent times, from field tests or historical documents? Are there skilled professionals with extensive expert knowledge of the geographical region? A mine is a hole in the ground owned by a liar. (Mark Twain) 
 Resources are not reserves Please see the complete version of this PUGNATORIUS white paper at http://www.scribd.com/doc/54425239
 Will the project utilize modern Is a robust business plan in place in technologies to achieve highest efficiency while preserving the environment and protecting its workforce? a manner and with a content which allow a positive investment decision? Are the licenses in place?
  • 7. The underestimated difficulties of a transition of the license from the applicant to the investor Government 1. site and equipment related aspects 2. individual-related aspects - reliability of applicant - financial background - etc. 
 Please see the complete version contribution / merger with joint venture company of this PUGNATORIUS white paper at http://www.scribd.com/doc/54425239
 License applicant - transfer of license - leasing / use right - transfer of all assets New license owner Joint venture
  • 8. Basic outline of the typical legal framework for mining licenses License type Reconnaissance license (Exclusive) exploration license Exploitation license Retention license License holder Does not involve any geological work Includes test drillings Large scale / small scale / artisanal Adverse market situation Duration and extension options Access to financial resources Access to financial resources Other limitations Technical ability Technical ability 
 Please see theApproved work plan Approved work plan Feasibility study complete version License requirements of this PUGNATORIUS white paper at Environmental Environmental http://www.scribd.com/doc/54425239
 License territory impact assessment impact assessment
  • 9. Mining evaluation bullet points from an investor's perspective Land Geographic location Surface (open pit or underground) Infrastructure requirements On-site facilities and construction Commodity Metallurgical characteristics Extraction rate, production capabilities Mining method Reserve estimates and grading 
 PleasePlant layout thePreliminary design Technical risk see complete version Environmental Technics assessment issues of this PUGNATORIUS white paper at Number and Ownership in land Type and duration map http://www.scribd.com/doc/54425239
Roadschedule Legal qualification of and infrastructure of concession and time employees Finance Seed financing Capital costs & operating costs Liquidity planning Exit Exploitation Mine in operation Verifiable in-ground assets Mining operator Legal framework
  • 10. Tasks for an international advisor in mining projects • PUGNATORIUS brings your mining operation from the drawing board to operation ✓Preparation of an investment proposal for the developer respectively analyzation of an investment proposal for the investor ✓Considerable effort has gone into finding the right mining professionals, into obtaining all required mining licenses, and ✓PUGNATORIUS helps obtaining alignment and support from regional and federal governmental instances. • Management and coordination of multi-national mining investment projects. ✓Acting as representative, agent, negotiator, trustee or confidant of sponsors, developers or investors of the mining project. ✓Legally compliant and cost effective problem solving in highly competitive and ever-changing marketplaces. ✓Risk management and financial engineering of complex mining ventures. 
 Please see the complete version of this PUGNATORIUS white paper at http://www.scribd.com/doc/54425239
 • Comprehensive strategy consulting in a volatile global environment.
  • 11. Investing in international mining projects • PUGNATORIUS advises developer and investors on mining projects around the world • We are experienced to guide through the red-tape require-ments, legal hurdles and inter-national tax structuring of foreign mining investments. 
 Please see the complete version assemble international teams • Weof this PUGNATORIUS white paper at suited to our clients' specific needs http://www.scribd.com/doc/54425239
 to combine investment know-how, local experience and a good understanding of the political network • We can assure the highest professional standards, level of availability and swift completion of challenging and demanding projects.
  • 12. www.PUGNATORIUS.com/panama