Our equity joint venture structure aligns interests, shares risk, and creates lasting value for both project developers and institutional investors. Learn how our approach differs from traditional mining finance.
A structured equity joint venture is a partnership where an investor provides capital in exchange for equity ownership in a mining project. Unlike traditional debt financing, the investor becomes a partner in the project's success, sharing both upside potential and downside risk.
This approach aligns their interests with the project owner's. When the project succeeds, both parties win. When challenges arise, they face them together as partners, not as debtor and creditor.
The JV structure is designed specifically for mining projects, incorporating industry-specific considerations like development milestones, commodity price volatility, and operational complexity.
| Aspect | Equity JV | Traditional Debt |
|---|---|---|
| Risk Sharing | ✓ Shared between partners | ✗ Fully on project owner |
| Interest Alignment | ✓ Perfectly aligned | ~ Potentially conflicting |
| Cash Flow Impact | ✓ No fixed payments | ✗ Regular interest/principal |
| Flexibility | ✓ High, partnership-based | ✗ Rigid covenants |
| Upside Participation | ✓ Full equity upside | ✗ None, fixed returns only |
Our equity joint venture structure scales from $50M to $500M, accommodating projects at various stages of development
Our in-ground asset valuation approach recognizes the true value of your mineral resources
Traditional valuation methods often undervalue mining projects by focusing solely on current cash flows. Our in-ground asset valuation approach considers the full potential of your mineral resources, recognizing that every ounce in the ground has intrinsic value.
Measured, indicated, and inferred resources with confidence factors
Long-term price forecasts and market cycle analysis
Technical, environmental, and regulatory considerations
Recent transactions and public market valuations
Grade, tonnage, metallurgy, and extraction complexity
Permitting status, infrastructure, construction readiness
Commodity outlook, demand trends, supply constraints
Experience, track record, execution capability
Institutional investors increasingly favor equity joint ventures for mining exposure
Equity partners share in the full upside potential of successful projects, including resource expansion, commodity price appreciation, and operational improvements.
Risk is shared between partners rather than concentrated on the borrower. This creates more resilient capital structures that can weather market volatility and operational challenges.
Unlike debt with mandatory interest and principal payments, equity partnerships don't require fixed cash outflows, preserving capital for project development and operations.
Equity partners often bring additional value through industry expertise, relationships, and strategic guidance, creating synergies that benefit the project's long-term success.
Without debt service requirements, more capital is available for project development, operational improvements, and growth initiatives that create long-term value.
For institutional investors, equity joint ventures provide direct exposure to mining assets and commodity cycles, diversifying beyond traditional equity and fixed income investments.
Our equity joint venture structure could be the perfect fit for your mining project. Let's discuss how we can partner together to unlock your project's full potential.