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From Largest to Leading
Mine Latin America 2017Toronto, Canada – November 23, 2017
Jorge NeherPartner, Dentons
The Northern Andes Opportunity
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Latin America keys for success
Project: resources, grade, upside 1
Political environment2
Regulatory readiness3
Market4
Conditions for Access to Capital
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Latin America losing a little edgeLatin America keys for success
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Northern Andes, a flavor for all tastes
Source: SNL
Projects: Resources and Grade
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Northern Andes, a flavor for all tastes
ATTITUDEIncreased
competition fromother jurisdictions
Lack of Legal certainity
Community Pressureand Rejection of
Industry
•Judicial decisions•Higher tax pressure•Regulatory changesto limit the industry
•Financial harassmentto industry
•Zonning uncertainty•Political Agenda
Political environment
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Northern Andes, a flavor for all tastes
Exploration / exploitationconcession
Form of grant
Frozenareas forauctions
Environmental permitto explore
Surface cost(US$ HA /
year)
NationalMining
CompanyGovernment
Take
Perú Yes FCFS No No Low No Simple
Colombia Yes FCFS / Auction Yes No High No Simple
Ecuador No Auction Yes Yes High Yes Multiple
Venezuela No Auction Yes Yes ? Yes Multiple
Regulatory Readines
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Northern Andes, a flavor for all tastesMarkets
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Northern Andes, a flavor for all tastesMarkets
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The whole array of risk profiles (metals)
•Low risk•Conservative investment•Croeded
Peru
•Medium risk•Industry in the making•Potential
Colombia•Medium to high risk•Bad regulations but right government•Greenfields•Potential•Cheap ticket
Ecuador
•Hight risk•First through the door•Gamble•Potential
Venezuela
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Conclusions
Markets getting stronger Money getting smarter
Latin America: good combination of resources, culture and readiness for
mining projects
Northern Andes: the best kept secret in Latin America. Check your blood pressure and take your pick!
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Jorge NeherPartnerDentons Cardenas & Cardenas D +57 1 746 7000 x120E [email protected]
Dentons
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