Gold Mountains Asset Management (GMA) is looking to provide private credits to more mining projects in a bid to support parent Zijin Mining’s diversification and global expansion efforts, said managing director Lisa Liu.

GMA, owned by China’s largest metals producer, is looking specifically at metal streaming investments, in which the asset manager offers upfront capital in the form of private credit to miners in return for future purchase rights at a discounted price, she said to this news service in an exclusive interview.

GMA prefers projects with at least eight to 10 years of metal production maturity, she said.

The subsidiary aims to invest in both greenfield and brownfield mining assets with at least one ton in annual gold production at costs between USD 1,500 and USD 1,800 per ounce.

However, for early-stage projects, it prefers to focus on those with secured production licenses, mineral exploration rights, mining licenses and environmental permits, she added.

The sweet spot for each metal streaming investment will be in range of USD 20m-USD 80m, she said.

GMA is now in talks with a Hong Kong-listed company which owns gold mine in Asia regarding on a gold streaming financing package, she said, declining to be more specific.

The projected investment returns range from 10% to 15% based on a product cost of USD 2,500 per ounce, she said.

It is also exploring opportunities with a Canadian candidate, she added, without further disclosing.

“We hope to announce new deals as they reach completion in the coming months,” Liu said.

Beyond the two regions, the firm is eyeing metal streaming investment opportunities in Australia, South Africa and South America, she said.

In October 2024, GMA completed its first metal streaming financing to Montage Gold, along with joint investor Wheaton Precious Metals International, supporting the development of the Koné Gold project in Côte d’Ivoire in Africa. The financing package totalled USD 825m, with GMA contributing USD 125m, as announced.

Established in 2013, GMA holds type 4 and 9 Securities and Futures Commission (SFC) licenses in Hong Kong, focusing on managing assets in the primary and secondary markets globally with a focus on the mining and mineral sector, Liu said.

In addition to Zijin Mining, GMA’s investor base includes strategic investors in the metal production space, she said.

The company is happy to bring in more general investors who are interested in investments in the mining and metal sectors, she noted.

Liu heads a team of 13 members, half of whom are investment professionals. The entire team is located in Hong Kong.

According to Zijin Mining’s website, it owns 14 mines in China and 19 others elsewhere, covering copper, gold, zinc and lead, lithium and other assets.