Raising Private Equity Finance

Although it may no longer be so closely associated with remote geographical locations where wild entrepreneurs chanced high risks for high rewards, or evoke images of coal-blackened faces, or gold-rush panhandlers, mining exploration remains in both the popular imagination and to a lesser extent in reality, something of a frontier activity. It still draws individuals and companies possessed of a certain strain of commitment, willing to dedicate themselves to complex long term projects despite the vicissitudes of global resource demand and without any guarantee of success. However, perceived value, greater accessibility to projects in emerging markets, value-adding advancements in mining technology and projected strong future demand for resources means that private equity (“PE”) is increasingly willing to support the exploration and asset development efforts of mining entrepreneurs and expansion plans of established mineral companies.

Charltons is experienced in advising mining and natural resource companies seeking to raise PE finance and also mineral industry companies (such as steel makers), institutional investors and PE and venture capital companies pursuing opportunities in the mining and natural resource sector.

We appreciate the many factors which affect, and often complicate, mining PE decision making. We also understand that the dynamic that shapes mining PE trends differs from those which drive PE trends globally. It is for this reason there is no universal standard of legal protection for investment in mining. Every project is different. Every project carries its own risks and rewards. There is no single method to calculate fair valuation. Investors will invariably seek out projects they consider “bankable” whereas miners will seek to retain project control under their own terms and conditions.

At Charltons, whether advising mineral companies or investors, we dedicate ourselves to working towards the implementation of successful investment strategies that generate returns for all stakeholders while ensuring continued sustainable growth.