Non-Dilutive Commodity Finance
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Volumetric Production Payment Benefits
- More flexible than debt
- Minimizes equity dilution
- Short funding timelines
- Investor does not charge up-front fees
- Tax friendly
Who is Volumetric Production Payment Financing Perfect For?
- Current Production – cash-flowing, majority interest assets
- Future Production – pre-feasibility & fully permitted with less than 18 months to production
- Below average cash costs
- Project in stable country – Economist Intelligence Unit rating of C or better
- Mine life greater than 5 years
- Financing requirements of $10M - $250M
Companies Using Volumetric Production Payment Financing
- Aurcana Corporation – 30% of production – $42M
- Goldcorp (2 VPPs) – 29% of production – $997M
- Glencore International AG – 28% of production – $285M
- European Goldfields – 27% of production – $58M
- Alexco Resources – 25% of production – $50M
- NovaDX* - 25% to 16% of production** - $38M
- Terrex - 25% to 15% of production*** - $14.7M
- FNX Mining – 20% of production – $400M
- Lundin Mining (2 VPPs) – 20% of production – $162M
- Metanor* – 20% of production – $20M
- Silvercrest Mines* – 20% of production – $12M
- Royal Coal – 18% to 12% of production** – $11M
- Luna Gold Corp. – 17% of production – $17.8M + $10M****
- Rambler Metals - 16% of production - $20M
- Redcorp Ventures – 15% of production – $90M
- Farallon Resources – 15% of production – $80M
- First Uranium Corp. – 13% of production – $125M
- Santa Fe Gold – 10% of production – $4M
- Brigus Gold Corp – 8% of production – $32M
- Mercator Minerals – 6% of production – $80M
- Colossus Minerals - 1.5% of Au production & 35% of Pd production - $60M"
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*Surge Capital Corp brokered deal.
**NovaDX & Royal Coal percentage of production drops after certain production quantities have been met.
***Terrex signed two different VPP agreements one for 25% of production and a second agreement for 15% of production on a separate property.
****17% of expansion capital expenditure will be provided up to a maximum of $10M.
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