Cartesian Capital backs Australia's White Rock Minerals

According to a statement, the deal will include a A$1 million ($740,000) equity investment to fund initial project feasibility testwork and a streaming $19 million component to be deployed over 6-12 months during mine construction. Cartesian will receive reimbursement in the form of cash, gold or gold credits over a period of seven years as well as payments from a gold and silver smelting royalty. 

"Mt. Carrington is a high quality project, with existing infrastructure and a proven resource base that should produce at a low cost for many years," said Peter Yu, founder and managing partner at Cartesian. "We look forward to a long-term partnership with White Rock and its management team."

White Rock is planning to produce about 111,000 ounces of gold and 6.7 million ounces of silver at Mt. Carrington over a seven-year period using relatively cheap surface mining methods. Preliminary studies have valued the proposed mine at around A$60.4 million with an IRR of 103%. Cash flow from operations is expected to pay back the cost of construction within 10 months.

Founded in 2006, Cartesian targets investments related to long-term evolutions in consumption patterns, industrial organization and merger and acquisition activity as well as market disruptions that result in a temporary divergence between value and price. It claims to manage about $2.4 billion in capital and has offices in Shanghai, New York, Sao Paulo, Warsaw and Bermuda.

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