What Is Royalties And Streaming Finance?

Posted 13th February 19

The Basics of Mining Royalties And Streaming

Historically, mining companies used a mixture of equity and debt finance to raise capital for the construction, expansion and development of their assets.

Since the global financial crisis in 2008 and the downturn in commodity prices, those funding sources have been significantly constrained and, in some cases, have dried up altogether. This has created the opportunity for Stream and Royalty Finance.

Stream and Royalty Finance comprises a situation where a company makes up front payments to development stage mining companies to purchase part of their future production at a price below the market price. The mining company receives capital through immediately monetising part of its future production.

Stream and Royalty Finance is still relatively new and with many high-quality mining projects requiring financing there is an opportunity for investors to receive a good return on investment. Only mining projects which have sufficient forecast-free cash flow to cover the financing and offer a reasonable return for investors are attractive to streaming and royalty finance companies.

There are many mining companies with high-quality projects which they cannot afford to commence, let alone get into commercial production. The cost of mine development, plant and equipment and start-up costs is more than many mining companies can afford to pay from their existing financing.

The traditional sources of finance are usually depleted through exploration and costly technical studies before the mining company gets to the mine construction decision.

This is where the Raptor team come in. Mining projects requiring finance will be introduced by carefully selected financiers who specialise in metals mining with particular emphasis on precious metals. Part of the Raptor team will also meet mining companies at precious metals company forums.

Royalties And Streaming Finance With Raptor

The Raptor Bond is a Royalties and Streaming investment held through an IFISA offering 8% interest pa. By investing as little as £2,000 through the Raptor Bond you will also be joining a community of like minded investors who ultimately want to invest in precious metals. To get started just follow these simple steps:

To get started just follow these simple steps:
1. Read all of our information on this website, we’ve tried to make it as simple as possible.
2. Submit an enquiry to our team to show your interest in the Bond and ISA.
3. Our team will be in touch for further information.

Your Capital Is At Risk

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YOUR CAPITAL IS AT RISK. Investment not covered by the Financial Services Compensation Scheme (FSCS), the investment may be difficult to transfer and your investment can go down as well as up. You must read our risk page in full before proceeding – click here.

YOUR CAPITAL IS AT RISK. Investment not covered by FSCS and may be difficult to transfer. Investment can go down as well as up. Read our risk page before proceeding – click here.