Public Commentary: This note is for mining sponsors, lenders and institutional investors. It does not constitute investment advice or an offer to arrange funding.
Early-Stage Mining Finance — Capital Pathways from Drill-Ready to Feasibility
Resource discoveries need capital long before the first tonne ships. FG Capital Advisors bridges that gap. We raise private placements, royalty & streaming packages, structured offtake prepayments and project debt—mapping each deposit’s risk profile to the right funding lane. Our LPs have financed US $3.8 billion across copper, gold, lithium and critical-metal assets on five continents.
Guide Navigation
1. Why Private Capital Targets Exploration
- Metal supply crunch: Energy transition metals—Cu, Ni, Li—face structural deficits, pushing investors to fund earlier in the curve.
- Return asymmetry: Discovery premium can lift NAV multiples long before first production, rewarding early risk-takers.
- Portfolio diversification: Streaming and royalty firms seek volumetric exposure without operating risk, widening cheque sizes for greenfield assets.
2. Funding Structures We Arrange
| Instrument | Stage Fit | Typical Terms |
|---|---|---|
| Equity Private Placement | Drill program, PEA | Strategic or institutional; 10-30 % ownership; no coupon |
| Convertible Note | Resource upgrade, PFS | 2–4 yr tenor; 6-9 % cash/PIK; strike at 20-30 % premium |
| Royalty / NSR | PFS to BFS | 1–3 % NSR; upfront payment; step-down after payback |
| Streaming Agreement | DFS to construction | 5–10 % of metal at 20-30 % spot; upfront deposit |
| Offtake Prepayment | Construction | Advance tied to tonnage; discount to LME price; take-or-pay |
| Project Debt | Shovel-ready | SOFR/EURIBOR + 350-550 bps; 5-7-year door-to-door |
3. Jurisdictional Focus
- North America: Tier-one legal framework and streaming appetite—critical metals in Nevada, Ontario and Québec.
- Africa: Copper & cobalt belts in Zambia and DRC; gold in West Africa—backed by DFI co-lending and political-risk cover.
- Asia-Pacific: Nickel sulphide in Indonesia, gold-copper porphyries in the Philippines—structured with offtake prepays plus royalty layers.
- Latin America: Lithium brines in Argentina and hard-rock deposits in Brazil—blend of equity, stream and local-currency debt.
4. Our Execution Process
| Phase | Key Actions | Duration |
|---|---|---|
| Mandate & Teaser | Resource statement, drill logs, ESG baseline, site photos | 1 week |
| Term-Sheet Round | Model run, valuation comps, pricing grid circulated | 3 weeks |
| Diligence | Independent geologist report, metallurgy, title review, community-relations audit | 4-6 weeks |
| Definitive Docs & Close | Investment agreement, security filings, royalty deed or streaming contract | 3-4 weeks |
5. Risk Controls & Covenants
- Milestone draws: Capital released on assay results, permits and milestone drilling meters.
- Cost overrun buffer: Contingency of 10-15 % funded via equity or subordinated note.
- Environmental bonding: Reclamation trust funded at construction start.
- Community agreements: Benefit-sharing MOUs embedded into financing docs.
- Political-risk insurance: Available for high-risk jurisdictions to protect senior capital.
Next Step
Whether you’re drilling the first fence line or finalising a feasibility study, FG Capital Advisors can align the right mix of equity, royalties, streams and debt. Contact us for a term-sheet outline and a clear timetable to funding.
This guide is informational. Independent legal, tax and technical advice is recommended before entering any capital-raising transaction.
