Public Commentary: The information below outlines a proposed private-fund strategy. It does not constitute an offer to sell or a solicitation to buy any security. Offers are made solely through confidential private-placement memoranda and related documents.
Global Battery Metals Mine Finance Fund: Diversified Copper, Nickel, Lithium & Graphite Strategy
Electrification and energy-storage demand are compressing the development window for key battery metals. Copper, nickel, lithium, cobalt, and graphite face projected supply deficits through the next decade. The Global Battery Metals Mine Finance Fund provides structured debt, royalty, and minority-equity capital to disciplined developers and producers on four continents, seeking private-equity returns with commodity upside and geographic diversification.
Guide Navigation
1. Investment Thesis
- Structural Supply Gap: IEA modelling suggests cumulative battery-metal demand could triple by 2030, requiring US $440 billion in new mine investment.
- Diversified Commodity Exposure: Portfolio construction across five critical metals dampens single-commodity volatility and captures multi-metal co-product upside.
- Financing Vacuum: Major lenders have curtailed green-field exposure, creating an opening for private capital to price structured instruments at attractive risk-adjusted yields.
- Multiple Exit Vectors: Streaming companies, integrated cathode producers, and strategic automakers remain acquisitive, providing liquidity well before IPO markets reopen.
2. Fund Structure & Terms
| Item | Provision |
|---|---|
| Vehicle | Luxembourg RAIF with Cayman and Delaware feeders |
| Target Size | USD 750 million |
| Strategy | Structured senior debt, royalties/streams, minority equity |
| Term | 10 years + 2 × 1-year extensions |
| Commitment Period | 4 years |
| Management Fee | 2.0 % p.a. on committed capital during investment period; 1.25 % thereafter |
| Carried Interest | 20 % over an 8 % preferred return (European waterfall) |
| GP Commitment | 2.0 % of aggregate commitments |
3. Target Metals & Regions
| Metal | Key Regions | Rationale |
|---|---|---|
| Copper | Chile, Peru, Zambia | High-grade porphyry deposits underpin grid electrification. |
| Nickel (Class 1) | Indonesia, Canada, Australia | Sulphide and HPAL projects supply high-nickel cathodes. |
| Lithium | Argentina, Chile, Western Australia | Hard-rock and brine projects meet ex-China cathode demand. |
| Cobalt | DRC, Indonesia | Critical co-product; pricing leverage via responsible-sourcing premiums. |
| Graphite (Natural) | Madagascar, Tanzania, Mozambique | Anode material with limited Western supply chain outside China. |
4. Deal Pipeline
Binding term sheets or exclusivity agreements are in place for four anchor transactions:
- Salta Brine Expansion (Argentina): USD 90 million senior secured loan plus royalty; projected gross IRR 19 %.
- Kolwezi Sulphide Restart (DRC): Streaming agreement on cobalt by-product; projected payback < 4 years.
- Bunyu Graphite Phase 1 (Tanzania): 25 % equity stake with offtake option to European anode producer; MOIC 2.6×.
- Nova Nickel Expansion (Western Australia): Construction mezzanine with price-participation warrants; IRR 17 %.
5. Risk Management
- Jurisdictional Risk: Political-risk insurance, arbitration venues in London or Singapore, and multi-lender security trusts.
- Commodity Price Volatility: Base-case underwriting at 30 % discount to consensus; downside hedges activated below covenant DSCR triggers.
- Technical Risk: Independent NI 43-101 or JORC audits; staged capital draws contingent on milestone sign-offs.
- Environmental & Social: IFC Performance Standards and Equator Principles embedded in all loan covenants.
6. ESG & Stewardship
- Quarterly reporting on greenhouse-gas intensity and water use per tonne of concentrate.
- Prohibition on artisanal or child labour within licence areas; third-party audits twice annually.
- Community-development agreements allocating at least 1 % of net revenue to local infrastructure and education.
- Alignment with the Global Industry Standard on Tailings Management for all relevant projects.
7. Target Return Profile
| Instrument | Gross IRR Range | Typical Tenor |
|---|---|---|
| Senior Secured Loan | 13 % – 17 % | 3 – 4 years |
| Royalty / Stream | 16 % – 20 % | Life-of-mine |
| Minority Equity | 20 % – 25 % | 5 – 7 years |
Portfolio modelling indicates a blended gross IRR of 18 % and a net-to-LP target of 14 % after fees and carried interest.
8. Subscription Process
- Indication of Interest: Submit non-binding IOI via secure data-room portal.
- Diligence Access: Review DDQ, pipeline models, and manager track record.
- Legal Review: Negotiate LPA and side letters; confirm regulatory clearances.
- Final Allocation: Execute subscription documents; fund initial capital call.
First close targeted for Q1 2026 upon reaching USD 350 million in commitments.
Next Step
Qualified investors may request full offering materials and a detailed track-record review by contacting FG Capital Advisors.
This document is provided for informational purposes only. It does not constitute advice or an offer to sell or a solicitation to buy any security. Investment in the fund is suitable only for sophisticated investors who understand the risks involved.
