Natural resources businesses that are already producing face a particular funding gap. They are too small or too specialised for the largest mining funds, yet need more expertise than a generalist investor offers.
The sources of capital
Equity from family offices and specialist resource investors
Offtake linked funding, where a buyer of the product provides capital against future supply
Royalty and stream financing
Project or asset backed debt, once production is proven
What investors look for
A clear record of production and costs
Reserves and resources independently verified
Permits and community relations in good order
A management team that has built and run operations before
A route to a return: dividends, sale or listing
Matching capital to the asset
The right structure follows the life of the mine or field. Short term working capital should not be funded with long term equity, and long life assets should not depend on short term debt.
Our team
Our natural resources work is led by Raj Karia and Kingsley Wilson, and includes our appointment as financial adviser to Iofina plc, North America's second largest iodine producer.
To discuss a raise, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.
This article is general information and is not advice.