We work with several investors and funds that specialize in gold mines. Investors are usually open to equity, debt, or a combination of both and will structure the terms to meet the needs of the borrower. Often deals are structured to allow investors to purchase gold from the mine at a predetermined and discounted rate. Gold mine investors are knowledgeable about mining and usually meet with principals and visit the mine before funding is finalized.
When reviewing gold mine investment opportunities, investors want to know whether your mine is currently producing, and if so how much. If the mine is producing, how much increased production can be expected by utilizing the invested capital. Please have geo reports, assay reports and third party 43-101 reports available as well as information on claims and permits.
Please also be prepared to answer questions about how much capital has been invested in the mine to date, liquidity of borrowers, and be able to show proof of funds upon request. Investors want to know that borrowers have skin in the game and the ability to help make the deal work. Some investors will require 10% proof of funds, while for others 1 – 2% liquidity to help with due diligence is acceptable. Any and all funds contributed by the borrower will be reimbursed upon successful closing. No upfront broker or referral fees will be requested; brokers and referral agents are paid only upon successful funding.