How the MININGSX Fund Invests in Mining Companies
Start-up stage – Tartan Global may provide financing for product development and initial marketing. The private or public companies may be in the process of being set up or may have been in business for a short-time, but have not sold products commercially and are not yet generating a profit.
Expansion stage – Financing for growth and expansion of the company that is breaking even or trading profitably. Capital invested may be used to finance increased production capacity, market or product development, and/or provide additional working capital. This stage includes bridge financing, rescue and turnarounds.
Buyout – Targeting the acquisition of a significant portion or majority control of businesses, which normally entails a change of ownership. In most cases, these will be more mature companies to invest in with established business plans to finance expansions, consolidations, turnarounds and sales, or spinouts of divisions or subsidiaries. These investments will sometimes entail multiple acquisitions, often referred to as a “buy and build” strategy.
Special Situations – The fund may invest in special situations like distressed assets and equipment in the mining sector, project finance, one-time opportunities resulting from changing industry trends or government regulations and leasing. This also includes investments in subordinated debt (mezzanine financing) that may include conversion rights, warrants or options.