On the Need Today for Due Diligence in Small Mergers and Acquisitions for Investment in Mineral Exploration, Mining, and Brownfield Projects

Mining & Minerals - Evaluations

Date posted: 04/28/13

Large mergers and acquisitions have established procedures for conducting due-diligence evaluations of mining and distressed property projects valued at greater than $50 million. Large companies must engage the large law firms and financial advisors, more for defensive purposes than out of necessity. With the trillions of dollars now sitting on the sidelines, and with the high prices of many mineral commodities and low cost of distressed real estate properties, qualified investors are presented with a dilemma. When is this money going to go to work? Investment in brick-and-mortar shops, even in shopping centers or strips, have to count on the U.S. economy bouncing back quickly or the potential returns are not worth the risk. Such investments are not being made, so the money remains tied up.