Mining capital involves large sums of money and the processing of raising capital must be systematic and structured to entice investors to invest their capital. This chapter covers the key topics to enable a successful capital raise for the different mining project stages, exploration, feasibility studies, mine development, construction and operation.
We unpack the different types of mining capital and the transaction structure behind each type, the processes of combining different types of mining capital to finance projects, the due diligence process for both the investor and mine developer, term sheets and the transaction structure applicable to each mining capital type, the process of raising mining capital, the human aspects and psychology that influence decisions to invest capital into mining projects and operations and non-fundable deal proposals and action plans to rectify.
The chapter concludes with a mining capital game plan, a model for developers that can be applied to any mining project, at any development stage and within any commodity, seeking capital.
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