LEXPERT RANKED LAWYERS
Armstrong, QC, Bradley
Lawson Lundell LLP
(604) 631-9126
barmstrong@lawsonlundell.com
> Mr. Armstrong has extensive experience relating to major resource project
approvals, including regulatory processes, environmental assessments,
impact and benefits agreements, judicial review proceedings and injunctions.
Baldwin, Christopher G.
Lawson Lundell LLP
(604) 631-9151
cbaldwin@lawsonlundell.com
> Mr. Baldwin advises on mine development, construction, operation
and mining M&A in Canada and the world. His practice includes
mining contracts with foreign governments, IBAs with Aboriginal
groups, JVs, royalties, strategic alliances and partnerships.
Belsher, Cameron G.
McCarthy Tétrault LLP
(604) 643-7985
cbelsher@mccarthy.ca
> Mr. Belsher's practice focuses on M&A, joint ventures and
corporate finance primarily in the mining, technology and
transportation industries. Representative clients include issuers,
their boards, private equity and investment dealers.
Bennett, Mark T.
Cassels Brock & Blackwell LLP
(416) 869-5407
mbennett@casselsbrock.com
> Mr. Bennett has extensive experience representing Canadian and
international mining companies involved in business combinations,
take-over bids, public offerings, private placements, metal streaming
and royalty transactions and stock exchange listings.
Blouin, Michel
Lavery, de Billy, L.L.P.
(514) 877-3041
mblouin@lavery.ca
> Mr. Blouin's securities practice for the mining industry
engages incorporations, M&A and reorganizations. He advises
on a broad range of matters including mobilization of capital,
issuance of securities and international agreements.
Boivin, Pierre
McCarthy Tétrault LLP
(418) 512-3012
piboivin@mccarthy.ca
> Mr. Boivin's practice is broadly based, with a focus on the
areas of M&A, private equity and related commercial matters,
and the planning and negotiation of business transactions.
He is national co-leader of his firm's Africa Initiative.
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LEXPERT
| 2013/14 | WWW.LEXPERT.CA
HudBay Minerals Inc., stream and royalty companies
are getting pickier.
"I think the streaming companies are being a little
bit more particular when doing their due diligence
and deciding which company or which stream to invest in."
"[AT THE PROSPECTORS
& Developers Association
of Canada Convention, mine
executives were busy] talking to
folks in the streaming and royalty
business. They were booked
solid. Meeting after meeting after
meeting. So clearly there is a lot
of demand. So this is a golden
moment, no pun intended, for
the streamers and the royalty
companies. They can pick and
choose and take the most
attractive projects."
– Ian Arellano, Torys LLP
For their part, miners are finding streaming deals
can be done more quickly than traditional loans or
issuing equity. And compared to conventional bank
loans, says Litwack, streaming deals have far fewer
restrictive covenants. Banks often restrict mine companies from seeking additional debt, selling assets,
spinning off divisions or engaging in other activities
in exchange for their loans. With streaming and royalty deals, mine companies can retain full control over
their operations.
Streaming deals, continues Litwack, "also fairly well
align the developmental and operating risks of the
project between the mining company and the streaming company, because neither succeeds unless the project succeeds. And both show higher degrees of success
the more successful the project."
Project quality has never been so critical as now,
says Farris's Murray. "Obviously a rising tide lifts all
boats. But when the tide is not rising, it exposes those
projects that may be more marginal given current
commodity prices. If you do have a project and are
looking for financing options, boy, you've better done
your homework."
That's easier for large and intermediate-sized companies. Before the crash, juniors could opportunistically raise cash for continued exploration on the TSX
Venture Exchange. But these days, cash-strapped
juniors face the challenge of doing the testing, drill-
