Summary: Dorsey partner Kenneth Sam considers in Report on Mining the acquisitions and exploration boom in the global mining sector. Commodity prices have surged in the last five years, giving rise to a modern-day global gold rush and opportunity for greenfield exploration and development companies.
Sam describes a growing trend for junior and mid-tier mining companies to finance mine development and construction projects using a variety of capital sources, including traditional project financing, bond financing, convertible debt financing, equity financing and even selling royalty interests on properties. He identifies risk management, project control and collateral as key factors in selecting an appropriate financing model.
"Mid-Tier Companies Driving Mine Development with Variety of Capital Sources" was published by Report on Mining magazine, Spring 2008. Republished with permission.