Asset types:
Just about any in-ground asset of definite and appreciable value, i.e.
· Energy reserves
· Gold mines
· PGM mines
Can consider other types of in-ground assets on a case by case basis.
The CEO of our lender said today that he had already taken in a gold mine, a coal mine, 2 PGM mines, and even a Glacier (glaciers are a great source of fresh water and minerals btw)
GEOGRAPHY: U.S. mines & reserves ONLY
OWNERSHIP TYPES: Can be owned, leased, or even BLM (as long as the mineral rights are secured)
OPERATIONS: Does not have to be in operation; does not have to plan to be in operation (if this is the case, we still need a use of proceeds narrative showing what the ultimate use of proceeds is and a repayment strategy)
LTV: up to 25%
MINIMUM: $400M (net value) i.e. if it is a coal mine for instance, and hypothetically if coal is selling for say, $45 per ton and the cost to mine is $13 per ton, and the cost to ship is $4 per ton, then the “net value” of the ton is $28, so the mine would have to have in reserves a minimum of a little over 14,000,000 tons.
MAXIMUM: up to $5B in FUNDING every 6 months!!!
TERM: very flexible. Up to 10 years.
NO INTEREST RESERVE.
First years interest due on the anniversary of the loan closing, however the next 4 years of interest can be deferred to the end of the fifth year!
DUE Diligence, Compliance, Legal Fees: $7,500
REQUIREMENTS:
Approximate time to close: 60 days
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