Preparing a mining project data room

A prospective investor needs to understand who holds the project rights, what technical work has been completed and how the proposed operation is expected to earn revenue. The data room should put the documents needed for that review in an accessible order.

Start with an index. Record each document’s date, owner and status, and separate current files from drafts or superseded versions. Include an issues list for information that is still outstanding.

Corporate structure and authority

Include the project entity’s corporate records, ownership information, relevant agreements and authorisations for the contemplated transaction. Identify the party able to grant the proposed rights and any approvals still required.

Explain how the operating entity, title holder and fundraising entity relate to one another. When those roles are split, an organisation chart and a short rights summary can make the structure easier to review. Do not place sensitive personal records in an unrestricted public folder.

Mineral rights and technical evidence

Include title documents and the results of relevant independent status checks. Then organise exploration records, sampling information, assays and technical reports by location and date. Preserve the underlying source data where it is available and appropriate to share.

JORC’s reporting framework distinguishes exploration results, mineral resources and ore reserves. Use technical descriptions accurately and identify the reporting basis; do not promote a preliminary estimate into a reserve simply to improve the presentation. ^[1]

Processing and operating assumptions

Explain the proposed product, the intended customer or receiver, and the work supporting the processing route. Separate demonstrated test results from assumptions still awaiting validation. Record the limitations of the samples or studies used.

Provide the proposed operating plan with its dependencies: access, utilities, equipment, labour, logistics and specialist services. Attach cost estimates with dates and scope. A quotation without delivery, installation or operating assumptions can be easy to misinterpret.

Environmental and social work

Include environmental and social work in the main project index, with the responsible specialist and the current status of each assessment. The IFC Performance Standards offer a recognised reference for assessing environmental and social risks and impacts; citing them is not a claim that a project complies with them. ^[2]

Explain the work completed, the assessments still required and the people responsible for addressing gaps. Include material community and access issues, relevant obligations and the proposed process for handling concerns.

Commercial model and financing request

State precisely what the requested capital is intended to achieve. Break the use of funds into work packages with decision points. Identify which costs are estimates, which are supported by quotations and which depend on unresolved choices.

Provide an editable model with a clear assumptions register. A reviewer should be able to change grade, recovery, price, throughput, costs and schedule without rewriting the model. Include cash requirements and downside cases alongside the forecast returns.

Control access and questions

Use permissions suited to the sensitivity of the documents. Establish confidentiality arrangements before sharing restricted information. Keep a version log and a record of questions and responses, so all parties can identify the evidence behind a decision.

A good data room does not remove uncertainty. It makes uncertainty visible enough to investigate. ECG’s partnership discussions begin with project scope and available information; no project is described as investment-ready merely because a folder exists.