In conjunction with the 2023 PDAC Convention, Dentons’ Global Mining group provided an exclusive program covering trends and developments in the mining sector, across key jurisdictions. At an inflection point, the mining industry has gone through significant changes over the past few years, with increasing focus on innovation, sustainable growth and a sense of profitable, but also purposeful, social impact. Now more than ever, investors and project developers require clear professional assistance to navigate the complex legal considerations and regulatory requirements which are part of the ever-changing global mining landscape. Our Global Mining group members work collaboratively and provide comprehensive and multijurisdictional advice that is catered to helping our clients achieve their goals.

Set out below are the high-level takeaways from each panel to assist you in the growth, protection, operation and financing of mineral exploration and development projects around the world.

Download all presentations here.

Protecting your global mining assets:

1. The best time to adopt an international arbitration provision, or structure one’s investment to take advantage of treaty protections, is at the beginning of a venture.
2. International commercial arbitration and investor-state arbitration can provide powerful protections, and allow a company to leverage third-party funding and a procedure that may allow opportunities for a business resolution.

For a customized presentation, please reach out to our panelists: Jorge Neher, Rachel A. Howie, FCIArb, Diora Ziyaeva.

Mining finance: From streaming agreements to deal structuring, what do you need to know for your next deal?

1. Streaming agreements are an alternative form of mine financing and are typically entered into before commercial production. In a stream financing scenario, the stream purchaser agrees to purchase all or a specified percentage of the future production of refined metals at an agreed (below market) price and pays an upfront cash deposit. A stream purchaser will usually seek security, such as taking a pledge of the shares of any entities that hold the project assets, legal opinions relating to title/mining claims, guarantees from subsidiaries that own project assets and mortgages/security agreements securing the project assets. Stream financing is non-dilutive to shareholders.
2. Royalty agreements provide the royalty holder with a contractual right to receive a cash payment from a mine operator based on the sale of produced minerals after commercial production. Royalty arrangements are often included as part of another main commercial arrangement, such as a joint venture agreement or in connection with the sale of a mine project/mining claims where the vendor receives the royalty as part of the purchase price consideration. There is flexibility in the type of royalty structure ranging from a gross overriding royalty, a net smelter return (i.e. a percentage of revenue after deducting certain agreed costs), or a fixed unit basis (i.e. per tonne, sometimes adjusted for inflation). Royalty arrangements are often unsecured and are non-dilutive to shareholders.

For a customized presentation, please reach out to our panelists: Leanne C. Krawchuk, KC, Ora Wexler.

Strategies for managing aboveground risks in Latin America today:

1. Latin America is one of the world’s key mining regions, and will continue to be important in meeting the global demand for critical minerals, both for its current production levels and its large reserves of copper, lithium, cobalt and nickel, among others. Therefore, mining developments in Latin America will have a huge impact on the global commodities markets and the global energy transition.
2. However, we know that in this region there are political and social crises that affect mining. Environmental impacts, Indigenous and community relationships and the distribution of socioeconomic benefits have been central to political and social conflicts all over the region.
3. The big question then is whether this region will be able to overcome these obstacles, especially at the social and political level. Let’s hope that this will be the case and that it will be possible to develop the industry in a sustainable way that generates value for all the stakeholders.

For a customized presentation please reach out to our panelist: José Ignacio Morán.

ESG and mining: From the latest in trends to mitigating risks – what you need to know

1. An understanding of the current ESG landscape helps companies direct and concentrate the proper allocation of resources, inform strategic decision-making and mitigate risks over disclosure.
2. Investors often assess and consider both external factors (such as societal and environmental developments) and internal factors (including a company’s response) when assessing their investments, which can then become part of ESG-related criteria.
3. ESG concerns must be addressed through and across the entire supply chain, not just its own operations.
4. Be aware that regulators have focused on greenwashing claims, including deceptive marketing practices.

For a customized presentation please reach out to our panelists: Brandon Irsigler, Robin Longe, Kelly Osaka.

Critical minerals: Are we meeting demands?

1. Critical minerals are considered necessary for clean energy production, are of significant importance to national economies and national security and have a high-risk supply chain.
2. Various nations are making efforts to protect the global supply chain of critical minerals, including by enacting policies and programs on a domestic scale, and joining with other nations to form bilateral and international collaboration agreements. One such domestic policy enacted in Canada is the new Critical Mineral Exploration Tax Credit (CMETC) which provides individual flow-through share investors with a federal 30% non-refundable income tax credit for early stage exploration expenses incurred in Canada, with respect to 15 targeted critical minerals, subject to certain legal and regulatory conditions.

For a customized presentation please reach out to our panelists: Michael Sabusco, Emmanuel Sala, Jennifer Poirier.

Accreditation

• LSBC: This session is registered for 90 Substantive minutes with the Law Society of British Columbia.
• LSO: This program is eligible for up to 90 Substantive minutes with the Law Society of Ontario.
• Barreau du Québec: In our view, this session would meet the CLE requirements of the Barreau du Québec. Please email Annie Girard to receive a confirmation of attendance.

Questions

For more information or if you have any questions, please contact Dentonscanada.Events@dentons.com.