Transaction Parameters
| Sector | Natural resources |
| Asset Maturity | Upstream natural resource assets that are at resource definition, scoping, pre-feasibility, pre-commercialisation or development stage |
| * We usually do not provide services for grass roots or exploration assets unless they are highly prospective and/or strategic | |
| Typical Client Profile | Emerging natural resource enterprises that are either: •stock exchange listed; or •private or newly formed, and there is a high probability that the injection of assets and capital will add significant value to the enterprise within 1-3 years |
| Geographic Focus | Siberia |
| * Domicile of client and/or its management is not important | |
| Investment Size | Up to $50 million although scope for significantly more for exceptional transactions |
| Investment Type | Equity securities (common or ordinary shares) or securities that are convertible into common or ordinary shares |
| Investment Liquidity | Our clients' securities are either listed on a recognised stock exchange or will be listed, usually within 6 to 24 months of completion of the initial transaction |
| Type of Return | Strong capital growth |
| Projected Return | Minimum of 2-5 times initial investment (dependent on projected exit horizon) |
| Exit Horizon | 1-3 years |
| Exit Trigger | Once financing for the next major stage of development has been obtained |
| * Listing is not usually the exit trigger | |
| Exit Mechanism | Usually on market, provided market conditions are amenable, or trade sale |
| Investor Base | Funds, family offices and other high net worth investors |
LONDON CHITA PERTH
Australian Financial Services Licence No: 326514
© Otranto Capital 2010
OTRANTO
