Mining Convertible Debt

A convertible note is short-term debt that converts into equity at a future financing event — usually the next priced equity round — at a discount (typically 15–25%) to that round's price. It allows mining companies to raise capital without agreeing on a valuation today.

Convertible debt works best when your project's valuation is genuinely uncertain (pre-resource, pre-feasibility), you expect a priced equity round within 12–24 months, and you want to avoid a low valuation in a down market.

A valuation cap sets a maximum conversion price — protecting investors if the company's equity value rises significantly before conversion. For example, a $20M cap means investors convert at a $20M valuation even if the actual round is done at $40M.

Mining convertible notes typically carry 6–10% annual interest, which often accrues until conversion. The investor's primary return comes from the conversion discount or cap, not the interest rate.

A bridge loan is straight debt — repaid in cash with interest. A convertible note converts to equity — the investor ends up as a shareholder. Bridge loans are better when you have a clear cash exit; convertibles are better when you expect to raise equity.

Yes. Listed mining companies on ASX, TSX, or AIM regularly issue convertible notes to institutional or sophisticated investors as an alternative to a discounted equity placement.

Mining convertible notes typically have 12 to 24 month terms, with conversion triggered by the next qualifying equity raise. Some notes include a maturity conversion to avoid cash repayment pressure.

Yes. OAKRG arranges convertible note financing for mining companies from $1M to $50M, connecting them with family offices, resource-focused funds, and strategic investors who participate in mining convertible instruments.