Advising Resource Companies
Advising Contractors
Mineral contractors are increasingly becoming involved in mining projects at an equity level. Charltons is experienced in advising on equity investment by contractors from the perspective of both the contractor and the mineral company.
Contractors should conduct thorough independent legal and financial due diligence to identify risks associated with a particular project as well as to gauge the rates and the expected timeframe for potential returns. Contractors should also be cognisant of the rights and obligations arising out of shareholder participation including how their equity investment will rank in the event of insolvency.
Form of Investment
Contractors should give due consideration to the different forms contributions can take including normal shares, preferential shares, redeemable preference shares and convertible debt (or indeed a mix of equity and debt).
If debt instruments are issued then the contractor should consider debt subordination and what debt priority arrangements exist among the various parties providing debt finance to the project
Read our latest News
Saudi Arabia’s Ma’Aden Q2 Profit Plummets 91% Amid Rising Operational Costs
NATURAL RESOURCES News The state-owned Saudi Arabia Mining Company (Ma’aden) reported a 91% decline in its second-quarter net profit, amounting to $93.53 million (SR350.9 million), compared to the same period in the previous year....
Chaarat To Sell Its Kapan Mine To Gold Mining For $54.5 Million
NATURAL RESOURCES News Chaarat Gold Holdings has decided to sell its Kapan mine to Gold Mining Company for $54.5 million. The decision comes amidst escalating operational costs and potential financial setbacks for Kapan. CEO Mike...
McEwen Considers IPO For Its Los Azules Copper Project
NATURAL RESOURCES News Canadian entrepreneur Rob McEwen said he is contemplating various financing routes for his Los Azules project in Argentina, hinting at a potential initial public offering (IPO) as early as November. Although...
Sinopec To Begin Operations In Sri Lanka On 20 September
NATURAL RESOURCES News Chinese oil giant, Sinopec, is set to commence operations in Sri Lanka on 20 September. The Chinese firm has been granted a 20-year licence to operate 150 fuel stations and sell fuel below the local...
Vision Blue Resources Invests $40m Into Mayur’s Lime Project
NATURAL RESOURCES News UK investment fund Vision Blue Resources (VBR) is investing $40 million to acquire a 49% stake in Mayur Resources’ lime venture in Papua New Guinea. This capital is anticipated to fully cover the project’s...
Oil Prices Fall Ahead Of China’s Economic Data Release
NATURAL RESOURCES News Oil prices dipped in early trading on 15 August as investors awaited crucial economic data from China, which is one of the world’s leading oil importers. US West Texas Intermediate crude fell by 0.13% or 11...