Royalties and Streams

Mining royalties and streams are innovative financial arrangements in the mining industry, providing crucial capital to mining companies while offering investors a unique opportunity for stable returns. Royalties involve payments made to the owner of mineral rights based on production, often a percentage of sales. This allows companies to access resources without direct ownership, mitigating risk and ensuring continuous revenue for the mineral rights holder.

On the other hand, streaming agreements involve upfront payments to a mining company in exchange for the right to purchase a percentage of future production at a fixed, often discounted price. Investors benefit from predictable cash flows and potential for profit as commodity prices fluctuate.

Both royalties and streams play a pivotal role in financing mining projects, fostering development while offering investors exposure to the resource sector without the operational risks of traditional mining investments.

Mason Law is a leading law firm in the area of alternative mine finance.