Resource Capital Funds has had a long held interest in northern Canada and the Nunavut region, having held several successful investments in the area. In particular, some of the attributes that make the region an attractive investment proposition include its highly prospective geology, world class deposits, commodity diversity, shipping in close proximity to some projects and populations near, but not in immediate proximity to projects. It is also a jurisdiction that welcomes and readily facilitates investment in resources.
To date, RCF has invested $265 million, or approximately 10% of the funds that it has invested since inception, in Nunavut to support four key projects – Baffinland Iron Mines Corporation’s Mary River high grade and direct shipping iron ore project on Baffin Island, Comaplex Minerals Corp.’s Meliadine gold project near Rankin Inlet, Cumberland Resources Ltd.’s Meadowbank gold project north of Baker Lake and TMAC/Miramar’s Hope Bay gold project south of Cambridge Bay. RCF’s substantial investments in each project were provided to advance assets through feasibility, bulk sampling, permitting and/or project financing stages.
Each investment faced its owned challenges from fickle equity markets to challenging joint venture arrangements yet ultimately became examples which demonstrate how RCF’s flexible funding and long term investment approach help to achieve positive outcomes. All of the four projects were later taken over by mid-tier and major companies in $3.5 billion worth of acquisitions. Fortunately, the Hope Bay project is once again in the hands of a junior company, TMAC Resources, and is fully funded to build the region’s next significant gold mine.
Key achievements which resulted from RCF investments made in Nunavut include less dilutive bridge loans, greater investor confidence, improved communication and, in the instance of the Cumberland Resources and TMAC investments, the private equity advantage for the companies was a cornerstone shareholder when they were financing their mine development.
In each of the four opportunities, RCF was able to see beyond the market valuation of the day to provide long-term and stable funding, which is always important in fluctuating markets and volatile project dynamics. For more information on RCF’s investments in Canada please contact RCF’s office in Toronto.