Re: Lining Up First Mining Finance Deals-Davis-Triple Flag-Magris
in response to
by
posted on
Aug 30, 2016 01:04PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Will we see private equity investment into the ROF from these players?
Ian McGugan - MINING REPORTER
The Globe and Mail
Published Monday, May 09, 2016 5:23PM EDT
"Details of the new streaming venture, to be known as Triple Flag, have yet to be formally announced, but observers say it will likely open within the next month and be looking to deploy an initial $1-billion or so.
The rush of money into streaming reflects a rare opportunity to play the gap between the hard times in base-metal prices and the rapidly improving outlook for precious metals.
Despite a recent rally, prices for base metals such as copper and nickel remain mired far below their levels of four years ago. The brutal declines have put many base-metal producers under severe financial pressure.
These miners often generate significant amounts of silver and gold as by-products. To raise cash, they are increasingly willing to sell rights to their precious metal output to streaming companies at attractive prices."
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http://www.miningmarkets.ca/news/private-equitys-evolving-role-in-mining/
In his fifteen years with Resource Capital Funds, a firm that pioneered the role of private equity investment in mining, partner Ross Bhappu has seen some big changes......
“Private equity may be playing a significant role in the mining sector for the next couple of years, but I would tell you that it’s unlikely to be a permanent source of capital for you as the industry comes out of its current challenges,” he said.
“Investing in the sector is difficult and challenging, and I think that in itself will keep the more generalist private equity funds from dipping their toe.”
One trend that is likely to continue, however, is the return of ex-mining executives into the sector using private equity money.
Mick Davis, former CEO of Xstrata, is looking for mining assets for his new mining venture, X2 Partners, which is backed by trading house Noble and private equity group TPG. Aaron Regent, ex CEO of Barrick Gold (TSX: ABX; NYSE: ABX), has a new mining venture too, Magris Resources, which is looking to tap private equity and other institutional investors.