http://commerceinsuranceauto.blogspot.com
Since the international institutional banking collapse in 2007 miners and would-be miners have been searching high and low for ways to fund their projects. Many were operational and had their credit lines cut which brought there mining efforts to a slow death. Others had dynamite projects that simply got shut out of the credit markets because institutional funding didn't have the liquidity to fund their start-ups.
Mines are being funded today. Naturally, those being funded would more likely tell you that they won the lottery than reveal their private funding sources and educate their competition. Both the funding sources and the mine owners are under strict NCND's and naturally honor them.
To tap into the capital to get your mining project funded, there a few essentials to crossing the proverbial finish line. First, the mine must have very solid geological reports stating proven reserves. To arrive at a proven reserve figure, a geologist must visit the site, take samples and send them to a reputable laboratory for testing. Once the results are returned, the geologist can then asses the data to provide a report that clearly states the proven reserves contained in the the mining claim. Reports that give estimated, inferred, or probable reserves are simply not acceptable by any funding source. The reserves must be proven and stated so by a geologist.
The other critical components to a successful funding are a sound business plan, pro forma, and reasonable use of funds. It is easy to separate the good projects from the great projects by reviewing the details, vision and action plain of the business plan. Many investors have seen successful mining operations from start up to full production. Any inaccurate or absent information in the business plan will immediately cause them to question the competence and experience of the management team.
Owning the asset is also important. Most banks and investors prefer to see the asset already in control of the borrower. The borrower must be able to fully and wholly pledge the asset to the lending partner at the time of closing. For this reason, it makes purchase transactions less attractive. If a borrower is purchasing an in-ground asset and seeking debt or equity financing, the lender is going to want to see a substantial amount of capital ready to be invested into the project. Purchase transactions where the borrower has little invested is possible, but the borrower can expect to give up a majority of the equity in the profits and projects in order to secure the financing.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น