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ANDREW HEINRICHS

Director – Acquisitions

Strategic Venture Fund, Hong Kong

Strategic Venture Fund Ltd's background

We are a metal mining focused search fund accelerator, actively seeking investment candidates that can take advantage of our US$+50 Billion market cap Chinese State Owned Enterprise (SOE) partnerships for financing.What do our SOE partners look for? Typically, either;

  •     US$100-$500MM Capital Expenditure potential

  •     US$+1.0bn NPV JORC/NI43-101 for JV or M&A


Why do we focus on this space?

Because non-Chinese junior mining companies find it difficult to tap into China Foreign Direct Investment institutions. ie China Export Import Bank, SinoSure, China Development Bank, Asian Infrastructure Bank, etc.

The problem we solve is that we help unlock US$<10MM market cap mining companies to develop their US$+1.0 billion NPV illiquid in-ground assets.

We create the catalyst to secure the risk capital AND the risk development partner, like Engineering Procurement & Construction Contractors (EPCC), to complete their CapEx commitments.

Solving the foreign junior mining company's "chicken & egg" dilemma of raising equity first at very dilutive rates or securing the ~80% Project Finance first.

US$<300MM Market Cap ASX, TSX & AIM listed mining companies find it useful to secure a comprehensive set of capital commitments in one go vs going back to a diluting market again and again for;

  1.     US$2-$20MM defining a resource ie JORC/NI43-101

  2.     US$3-$15MM Bank Feasibility Study (BFS)

  3.     US$15-$100MM ~20% equity gap in Project Finance


Instead, now the complete US$100-$500MM CapEx budget can be satisfied by a single SOE group.

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