Creative financing solutions evolve in the mining sector

By Michael Pickersgill and Peter Danner, Torys LLP
0
1453

As challenging financing markets persist in the mining sector, miners are using increasingly creative combinations of financing options to fund project development and acquisitions. It is now common for transactions to feature multiple financing sources, with equity and debt being raised in conjunction with streaming, off-take and/or royalty financing.

No longer confined to junior and mid-tier transactions, stream and royalty financing is playing a key role in high-profile transactions, and streams and royalties are evolving to suit the needs of both mining companies and their financiers.

In a stream transaction, a streamer agrees to purchase, at a pre-agreed price or formula, future deliveries of minerals from an identified property in exchange for an up-front payment, called a deposit, which is applied against those deliveries. The streamer normally takes security over the project assets to protect its deposit and secure the performance of the delivery obligations.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Torys LLP is an international business law firm that works with clients who expect the best advice and service. Michael Pickersgill is a partner and Peter Danner is an associate at the firm.

Torys_-_logo

79 Wellington Street West, 30th Floor,

Box 270, TD South Tower

Toronto, Ontario M5K 1N2 Canada

Tel: +1 416 865 3688

Fax: +1 416 865 7380

Email: info@torys.com

www.torys.com