Loading ...Royalty Co’s to Form Syndicate
Issue 145, November 2015
The world’s largest royalty and streaming groups are clubbing together to form a syndicate, promising some of the sector’s largest ever deals to date, Global Mining Observer reports.
The syndicate includes gold royalty group Franco-Nevada and silver streaming giant Silver Wheaton, but also looks set to include a variety of money managers, from pension funds to private equity, according to high level sources involved.
Orion Mine Finance, formerly part of copper trader Red Kite, and private equity firm Blackstone, one of the world’s largest asset managers, are both angling to be included. Caisse de depot, the Quebec-based pension fund, is also “trying to piggyback” on deals negotiated by royalty groups, according to one chief executive, who has previously landed financing from the fund.
Glencore’s Collahuasi copper mine in Chile, which has a thumping 68-year mine-life, is meanwhile the first mine in the syndicate’s sights, promising a big-ticket deal for Glencore, as companies jostle for a share of the agreement.
Glencore is also in talks to sell a stream, equivalent to a bulk forward sale, over “non-core” gold and silver byproduct from its Antapaccay copper mine in Peru, Global Mining Observer reported in early September, citing sources on both sides of the process.
more http://www.globalminingobserver.com/royalty-groups-to-form-syndicate-145