{"id":46,"date":"2020-04-01T19:38:40","date_gmt":"2020-04-01T11:38:40","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=46"},"modified":"2020-10-07T10:48:24","modified_gmt":"2020-10-07T02:48:24","slug":"risk","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/","title":{"rendered":"Risk"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; module_class=&#8221;main-content2&#8243; _builder_version=&#8221;4.4.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/' title='EPCM and EPC Agreements'>EPCM and EPC Agreements<\/a><\/li><li><span>Risk<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Advising Resource Companies<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;230379&#8243;]<div class=\"content-menubar\">\r\n<div class=\"page-menu-panel\">\r\n<h3>Advising Resource Companies<\/h3>\r\n<p><span class=\"hamburger\"><\/span><\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul><\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title\">Risk<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<p>\r\n    All equity positions involve certain risk exposure. The position of contractors who become shareholders in the mining projects with which they are connected is somewhat unique in that their focus is not only on the successful delivery\r\n    of project infrastructure but also in the longer term life of mine profitability of the project.\r\n<\/p>\r\n<p>If the contractor holds a mixed equity and debt position it becomes interested in ensuring that the project generates sufficient cash flow from which the project&#8217;s debt can be serviced.<\/p>\r\n<p>\r\n    Ongoing risk exposure can be managed in a number of ways including, but not limited to the inclusion of protective provisions at the subscription stage and in agreements between shareholders. Ultimately contractors can opt to pursue a\r\n    policy of strategic divestment to achieve an orderly risk managed exit from the project.\r\n<\/p>\r\n<p>\r\n    Contractors who take equity positions in mining projects which are contemplated to be part of a listing in Hong Kong should be aware that their contracts may be considered a continuing connected transaction pursuant to Chapter 14A the\r\n    Listing Rules. If this is the case then the infrastructure agreement may be subject to re-approval by the listed companies&#8217; shareholders at least every three years.\r\n<\/p>\r\n<p>\r\n    Charltons is experienced in advising contractors on managing their risk through subscription and inter-party agreements. We frequently submit waiver applications to the Exchange seeking waivers from the connected transaction\r\n    requirements set out in the Listing Rules.\r\n<\/p>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/advising_resource_companies\/risk.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.8&#8243; hover_enabled=&#8221;0&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/' title='EPCM and EPC Agreements'>EPCM and EPC Agreements<\/a><\/li><li><span>Risk<\/span><\/li><\/ul> Advising Resource Companies Advising Resource Companies <ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul> Risk All equity positions involve certain risk exposure. The position of contractors who become shareholders in the mining projects with which they are connected is somewhat unique in that their focus is not only on the successful delivery of project infrastructure but also in the longer term life of mine profitability [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":36,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>All equity positions involve certain risk exposure. The position of contractors who become shareholders in the mining projects with which they are connected is somewhat unique in that their focus is not only on the successful delivery of project infrastructure but also in the longer term life of mine profitability of the project.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If the contractor holds a mixed equity and debt position it becomes interested in ensuring that the project generates sufficient cash flow from which the project's debt can be serviced.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Ongoing risk exposure can be managed in a number of ways including, but not limited to the inclusion of protective provisions at the subscription stage and in agreements between shareholders. Ultimately contractors can opt to pursue a policy of strategic divestment to achieve an orderly risk managed exit from the project.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Contractors who take equity positions in mining projects which are contemplated to be part of a listing in Hong Kong should be aware that their contracts may be considered a continuing connected transaction pursuant to Chapter 14A the Listing Rules. If this is the case then the infrastructure agreement may be subject to re-approval by the listed companies' shareholders at least every three years.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Charltons is experienced in advising contractors on managing their risk through subscription and inter-party agreements. We frequently submit waiver applications to the Exchange seeking waivers from the connected transaction requirements set out in the Listing Rules.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[25],"class_list":["post-46","page","type-page","status-publish","hentry","category-advising-resource-companies","cat-25-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/46","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=46"}],"version-history":[{"count":10,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/46\/revisions"}],"predecessor-version":[{"id":232650,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/46\/revisions\/232650"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/36"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=46"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=46"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}