Funding options for mining activities

L&J Investment AB’s strategy is:

  • To target (a) active mines facing financial difficulties or (b) exploration projects in the feasibility study stage that are in need of additional investments for the production phase.
  • To propose a financing solution to mining companies based on a tailored pre-export financing scheme implemented at the condition of being allowed to purchase and/or trade their production.
  • To find investors for their further development as equity partners.

L&J’s objective is to create a secure financing conduit for banks and investors by sequencing transactions and offsetting underlying associated risks. By combining a pragmatic approach to performance risk, each commodity financing opportunity is approached separately and assessed by our independent consultants through a due diligence of the mining company’s ability to comply with three critical areas:

  1. Technical ability to produce the commodity on time, in terms of reserves, management performance, mining equipment and treatment capacity.
  2. Financial ability to generate current assets in order to meet payroll, acquire necessary supplies and maintain plant and equipment.
  3. Legal ability to enforce contracts regarding the right of the lender to realize repayment in a hard currency country or in commodities at the time of delivery.