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| Approaching Resource Capital Funds |
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When approaching Resource Capital Funds, companies or individuals should be aware that we have an established sequence of reviewing, processing, approving and documenting transactions such that a realistic timeframe from initial presentation to advance of funding for accepted transactions is at least two months and generally longer.
Our typical investment approval process is as follows:
- Assemble and review summary information from the Company.
- Discuss technical details of the project/company, nature of possible transaction, other company details, etc.
- Obtain more detailed information and conduct a paper review of corporate and general technical data.
- For transactions that remain of potential interest, prior to embarking on more elaborate due diligence, we will often prepare an indicative term sheet for discussion that outlines the terms of a potential transaction.
- If substantial agreement can be reached on potential terms, we commence detailed due diligence, which includes site visits, building our own project and corporate cash flow models and legal due diligence. In some instances, external consultants may be brought in at this time. During this time, we continue to discuss and refine terms in the indicative term sheet.
- Following completion of due diligence, agreement on a term sheet and preparation of supporting material, the transaction is presented to our Investment Committee for review and approval.
- If the transaction is approved by the Investment Committee, formal legal documentation is prepared and a closing is scheduled.
- Funds are not advanced until all transaction and security documents are executed and all necessary approvals are received.
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