Categories: General Market Commentary
Topics: General Market Commentary

Orion Resource Partners raising $500m in royalty, streaming fund - sources

LONDON – Orion Resource Partners is raising up to $500-million in a fund financing potash, tungsten and iron-ore mines, sources close to the matter said, meeting miners' need for funding and investors' appetite for long-term assets.

Miners are turning to alternative sources of finance as the industry has struggled to woo back traditional financiers, even though commodity prices are rebounding from the crash of 2015/16.

Orion will provide royalties and streams and close the fund in the next few months, the sources said.

Streaming and royalties are types of alternative finance for the mining sector and generally involve an upfront payment to a miner, which then repays it by supplying metal at a later date.

The company's investors, mainly pension funds, sovereign wealth funds and other long-term funders, had expressed interest in having exposure to mining for long-term projects that would pay steady dividends over time.

Click here to continue reading...