Financing Instruments
As part of the development of the Junior Mining Platform, the AIFC is exploring approaches to the application of various financing instruments tailored to early-stage mining projects.
Given the специфики отрасли and the elevated risk profile at the exploration stage, particular attention is given to alternative financing mechanisms that enable capital to be raised prior to full investment readiness.
Such instruments include:
Royalty — a form of financing where an investor provides capital in exchange for the right to receive a fixed share of future revenue or production. This structure allows companies to raise funds without increasing debt burden or diluting ownership.
Streaming — an agreement under which an investor provides upfront financing in exchange for the right to purchase a portion of future production at a predetermined price. This approach enables access to capital at an early stage without relying on traditional bank financing.
Earn-in agreement — a mechanism whereby an investor earns the right to acquire an equity interest in a project upon fulfilling agreed commitments, typically through funding exploration activities or project development. This instrument is widely used in junior mining and allows project owners to advance the asset while maintaining control.
Option agreement — provides an investor with the right to acquire an interest in a project upon the occurrence of predefined conditions. This allows investors to manage risk through a phased entry into the project.
Joint Venture — a partnership structure in which the investor and project owner combine resources for the joint development of a project, sharing risks and potential returns.
These instruments are considered as possible models of interaction between investors and project initiators and are not imposed on platform participants.
The Junior Mining Platform does not participate in structuring transactions and is not a party to financial agreements. The selection and terms of financing instruments are determined directly between investors and project owners.
Registration Fee
The registration fee applies only to projects (license holders) submitting applications to the Junior Mining Platform.
A registration fee of USD 300 is required for submitting an application. The fee is charged for the review of the application and is non-refundable.
Each application corresponds to one licensed area (project). In case of submission of multiple applications for different licenses, the registration fee is payable separately for each application.
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