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Bilateral Financing Structures For Mining Companies Across the North-South American Axis: The Beginnings of Action

Carmen Diges, Ricardo Irarr√°zabal, Proceedings of 53rd Annual Rocky Mountain Mineral Law Institute (2007)

This chapter will analyse the issues and challenges facing junior mining companies, both those originating in North America with assets in South America and those originating in South America seeking to gain access to the North American financial markets. Regulatory obstacles and capital structure considerations will be identified and strategies for bilateral establishment and growth of such junior companies will be outlined. In addition, corporate governance considerations, and management structures that are necessary or desirable for companies wishing to gain access to the North American financial markets, will be discussed. The chapter will then explain and evaluate a number of initiatives undertaken recently in Chile and Peru, which begin to utilise the principles dictated by the archetype identified in the first part of the chapter.
Mining exploration and exploitation has a long-standing tradition of international cooperation among various players from property holders to financiers, technical personnel, co-venturers, and the like. It is, therefore, appropriate for the sector to form the cornerstone of a new paradigm for the development of assets on an international basis. This chapter examines some of the systemic shortcomings of and obstacles to project evolution presented by the public market systems in North and South America and concludes with the need for an inte