PRIVATE EQUITY AND RELATED FINANCING FOR MINERAL DEVELOPMENT: STREAMING TRANSACTIONS

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2011)
CHAPTER 13C
PRIVATE EQUITY AND RELATED FINANCING FOR MINERAL DEVELOPMENT: STREAMING TRANSACTIONS
Erik Goldsilver
Cassels Brock & Blackwell LLP
Toronto, Canada

ERIK GOLDSILVER is a partner in the Business Law Group at Cassels Brock & Blackwell LLP and practices in the area of corporate and commercial law with specific expertise in the mining and energy sectors. As a member of the Cassels Brock mining practice group, Erik has acted for and advised Canadian and international mining companies on acquisitions and dispositions of mines, mining projects and mining companies, project development, and mine operations in Canada and throughout the world. Erik regularly advises on the structuring and negotiation of option and joint venture agreements, shareholder agreements, royalty and streaming arrangements and offtake agreements. Erik has extensive experience with all legal aspects of the development, construction and operation of mining projects, including advising on Aboriginal issues and claims, environmental and regulatory compliance matters, permitting issues and mine closure, decommissioning and reclamation issues. Erik has also advised mining clients on energy-related issues, such as power procurement, interconnection and transmission services.

STREAMING TRANSACTIONS

Erik Goldsilver

Rocky Mountain Mineral Law Foundation / International Bar Association

Rio de Janeiro - April 6, 2011

Presentation Outline

1. General Commercial Idea and Recent Examples

2. Contractual Terms - General Discussion

3. Contractual Terms - Purchase Price

4. Transaction Structuring - Domestic Transaction

5. Transaction Structuring - Offshore Transaction

6. Recent Transactions - Latin America

Commercial General Idea

• Vendor owns a mineral property and requires financing to complete construction of a mine or to finance other capex

• Vendor...