Case Study: Toronto Gold Company

DGS attorneys represented a venture capital group in negotiating, structuring and documenting a loan convertible into equity for a Toronto based junior gold company with operations in Mexico and Central America. When the mining company encountered unexpected operational problems and geologic anomalies while trying to bring its new mine in Central America on line, its financial position began to deteriorate, and our lawyers stepped back in to amend and restructure the loan, its covenants and the security for the loan. This effort involved working closely with local counsel in Central America to understand and assess the available options as well as repeated visits to the mining company’s headquarters in Toronto and its mine site in Central America. The restructured loan allowed the mining company to surmount its difficulties and develop a profitable mine and the venture capital group ended up with a profitable investment.

For more information on the firm's experience in mineral financing, please contact Joel Benson, Deborah Friedman or Randy Hubbard.