The Board of a major international mining company required on-going support in reviewing acquisitions in order to obtain an independent opinion on the above-ground risks around potential targets. The company’s Board of Directors required this independent analysis not only to prevent the consummation of deals without proper due diligence but also due simply to “deal heat.”
- The mining company was focused on quickly growing its reserve base, resulting in a review of multiple deals on a monthly basis.
- The company was not able to internally evaluate above-ground risks due to the number of deals reviewed on a monthly basis as well as because of the Board’s requirement that an independent review of above-ground risks be conducted for each asset.
- The global nature of the company’s potential acquisitions required an outside partner with global breadth to conduct the necessary above-ground due diligence.