There are certain risks inherent to the mining industry, including the cyclical nature of commodity demand, unpredictability surrounding exploration and production costs, access to transport infrastructure, management, access to labour, changing national regulations, geo-political concerns, local inflation, environmental compliance and currency volatility together with the less tenable but nonetheless material risks associated with sustainability, mine-rehabilitation, geographic remoteness and community relations. Investors in the mining industry need to factor these risks into their investments plans. The longer investment horizon normally associated with mining investments is in itself also a risk investors need to consider.
We understand the myriad of factors that influence mining investors and are experienced in advising on the legal safeguards that should be put in place to protect them. We assist investors balance the goals of risk minimization and profit maximization. We understand that although certain projects may appear to be fundamentally sound, legal risks can only be properly ascertained following the completion of thorough legal due diligence process.
Charltons also advises natural resource companies on strategic equity investments in mining project around the worlds. Typically natural resource companies apply different investment criteria when contemplating investments compared to those applied by non-mining industry PE investors. In this regard Charltons advises on “Off-Take” arrangements, incorporated and unincorporated joint ventures, and farm-in/farm-out arrangements. We also advise on EPCM and turn-key contracts and infrastructure access agreements.
Charltons can advise investors on:
for investors who may be unfamiliar with the debt financing option, better understand the process so they can make the right choice as to what financing model best suits them. We are happy to play a key role in coordinating and/or managing the process between borrower, lender, sponsor (where applicable), professional advisers and technical consultants.
Charltons can assist sponsors and borrowers by: