Billion-dollar Hedge fund buys stake in Storm Copper Project future Royalties.
All comments are based on my humble opinion.
Why is an Australian based Equity Fund (Taurus Funds) paying US$4.1 million (dated 25th Jan 2024) for a Royalty stream link to the production of copper and zinc from Storm-Seal deposits? As Taurus Funds website mentions, "We seek semi-annual income distributions from coupons and fee revenue and real asset return through Structured Equity for life of mine in the form of royalties, offtake of physical metal or warrants." Taurus have a team of investment advisors, crunching the financial numbers, well above my pay grade, who obviously see the longer-term strong growth potential of AW1 & BAY's Storm Copper Project during this early development phase.
Overall, Taurus' investment suggests that they believe the Storm Copper Project has a promising future and that the royalty stream offers them an attractive combination of income, diversification, and long-term growth potential.
Mining Finance Taurus provides project and acquisition finance debt to emerging mining and metals companies to finance or refinance project developments. We seek semi-annual income distributions from coupons and fee revenue and real asset return through Structured Equity for life of mine in the form of royalties, offtake of physical metal or warrants.
Private Equity
Taurus invests in small and mid-cap mining companies which have strong growth potential. We invest in private and listed companies; early listing is a peculiarity of the world’s mining industry. The private equity structure is necessary because liquidity is generally lower in the development stage and equity often tightly held. Liquidity generally improves as projects are commissioned, providing an opportunity to divest.
The Venture Capital business was founded in 2006 and employees 11-50 employees.
Currently manages about A$2.3 billion of fee-earning capital across mining finance, mining royalties and private equity.
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