The royalty financing technique is often used by mining companies when indicated reserves are in place and bridge financing is needed to complete further exploration and development work and to produce a "bankable" feasibility study.  This enables the mining company to attract a larger partner with proven operating capabilities to put the property into production.  The advantage of financing with a royalty agreement is that the issuer does not dilute its ownership in the property or its interest in the company, and there is no impact on the management of the operations.  Financing decisions can be made quickly and the transaction value is generally in the $1 million to $10 million range. 

Repadre Capital Corporation purchased a 5% net smelter return royalty and a 6% net profit interest on a Latin American property held by Triton Mining Corp.  IBK Capital represented Triton in the negotiations.  In addition, Repadre Capital Corporation created a 3% net smelter return royalty, declining to 1.5%, on all of American Gem Corporation's sapphire production.  Repadre also created a 1.5% net smelter return royalty on Newgold, Inc.

As an alternative to raising capital in the public markets, many junior mining companies have sought business partnerships with senior producers who can offer both financial and technical assistance and expertise, the “Partner of Choice” alternative.  The key to completing such transactions in a manner beneficial to the long term interests of both parties is the ability to initiate creative financing structures and to execute them in a timely fashion with strategically chosen partners.