As mining investments are long-term investments, our investment philosophy is dedicated to the concept of long-term committed capital. Gone are the days of short-term investment vehicles (e.g. mutual funds and hedge funds) funding long-term projects such as mines. As each level of de-risking cannot be expected to produce a higher stock price, proper returns in the mining sector come as a by-product of committing capital for a longer period of time.

The proper de-risking of a project to an operating mine has many layers, with value being added at each stage. Small companies need capital to advance through each phase of the de-risking process. Additionally, these companies benefit from advice and experience in successfully navigating the political, social and technical challenges that may be encountered.

Producers will pay large premiums for future mines, but they require the junior company to fully de-risk the project first. Therefore, the junior will have to provide a shovel-ready project. All technical studies must be complete, all permitting must be complete, and a social license must be in place. Our objective is for the premium to accrue to our clients.