Alternative form of mine finance seen boosting tepid M&A: Reuters
A funding technique mostly used to help companies build new mines is moving into the mainstream as a way to pay for acquisitions and could help boost industry deal volumes that have fallen for the past three years, Reuters reported. Stream financing, through which miners get cash upfront in exchange for agreeing to sell a fixed percentage of future production at a discounted set price, was part of Yamana Gold Inc's white-knight bid for a 50 percent stake in fellow Canadian gold miner Osisko Mining Corp in April. Yamana's $930 million bid was financed in part by a $275 million stream transaction with the Caisse de dépôt et placement du Québec.
9 June 2014•4 mins read
