Potential Partners

This page is dedicated to list potential partners for development of a Chidliak mine.

Update - June 2016 - Here is a classic example of a  potential investor in Chidliak -- Waterton Global Resource Management
This group just raised US$750 million to investor solely into the mining sector. They could have raised even more, but stopped as short as they decided that even more dollars become less efficient to spend.  Here is a link to their website -- Waterton Global
I suspect they will want to invest in projects that give reasonable returns in a reasonable timeframe. That fits with Chidliak...if they are willing to venture into the diamond sector.

There is already a page that lists potential acquirers -- Potential Acquirers
One can assume that any potential acquirer could be a potential partner direclty in the project or part of an indirect financing as well.

In addition to the above, what about other parties?


Government related funds:

We know government plays a role in infrastructure as highlighted on other pages in this blog, but what about direct investment in the development of a mine. There would be a couple of entities within the government that could play a role as highlighted below.

CPP - Canadian Pension Plan  - This plan invests on the behalf of all Canadian workers (or ex-workers) and has a quite large amount of money it does actively manage. The investment board has a team of 3 employees that work directly in the natural resource industry -- Investment Board - Resources. A small company like Peregrine Diamonds would not be a candidate for a direct investment, however a direct investment in Chidliak to develop a mine would be of interest. Chidliak has the potential to generate large returns for a partner.
 
Other large Pension plans in Canada:

ORPP (Ontario Retirement Pension Plan)
RRQ (Quebec Pension Plan)
OTPP (Ontario Teacher's Pension Plan)

Theses plans above have a significant amount of money to invest and are not afraid to invest in large capital projects to generate above market returns.

International institutions - There are a lot of international banks based in places like London and New York that do have a need to find capital projects to invest in. These projects are compared based on risk and return. Chidliak could have the potential to bring one of these institutions to help finance the development of the mine. These institutions do not even need to be experienced with mining, although a lot of them would have a small mining team to do internal due diligence with.

Private wealth funds - There is a significant amount of money pooled together with very wealthy investors into these private wealth funds. A lot of them are based in the USA, but not necessarily all of them. These are very opportunistic and want and are paid to get the best return for their investors. A project like Chidliak might be an opportunity for one or more of these funds, although it would be fraught with tough negotiators on both sides. Investor team on the one side trying to get the best return versus the Friedland's on the other side trying to retain the best returns for themselves.

Sovereign Wealth Funds - These are funds that strictly owned by the state (government) and invest in assets around the world. One normally thinks directly of China, but there is a wealth of funds out there from several countries. Here is a link highlighting some of the top active funds -- Sovereign Wealth Funds. Here is a nice graphical map of where these funds reside -- Map
The reality is that Diamond Mining in Canada is still very young and diamond trading around the world is many times older then that. There is significant opportunity outside of Canada to invest within Canada in an industry that is very international.

Any opportunities above or beyond would involve a lot of boardroom talk behind closed doors and if anything comes out of it, it is usually not announced until something is actually signed.

With Chidliak approaching a PEA study, it may finally be at a stage (hand in hand with economic numbers) to successfully negotiate a partnership for the development of Chidliak.


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