Synterra
Investments inMiningMineralsOil & Gas
Synterra - The Natural Resource company of choice
Africa the Emerging Market
Synterra Capital is a specialist investment and advisory firm with deep experience in sourcing and structuring finance for mining and oil & gas projects across Africa. With a strong focus on emerging markets, Synterra leverages its in-depth understanding of frontier risk environments to unlock value others overlook. By treating risk not as a barrier but as a strategic advantage, Synterra delivers superior yield and profitability for its partners and investors, driving growth in some of the world’s most resource-rich yet undercapitalized regions.
Facts
Our Achivements
Over The Years
Our small but focussed team have extensive on-the-ground knowledge of African jurisdictions, regulatory environments, and socio-political dynamics.
Our Investment Approach
The Process
The Way We Work
Synterra Capital’s disciplined 5-step approach allows it to turn geological potential into bankable assets—leveraging project finance, equity ownership, and frontier risk management to unlock sustainable profitability in Africa’s resource sector.
Objective: To source high-potential mining and mineral resource projects aligned with Synterra’s investment mandate in Africa’s emerging markets.
- Sourcing Channels: Projects are identified through Synterra’s extensive network of geologists, mining engineers, local partners, governments, and strategic industry players.
- Initial Screening: Projects undergo a preliminary assessment focused on:
- Geological potential (size, grade, mineralization, and resource estimates).
- Legal title and concessions (mining licenses, permits, land rights).
- Political risk and jurisdiction stability.
- ESG and community impact factors.
- Preliminary Financial Modelling: Basic cash flow and IRR modelling is conducted to assess funding viability and yield potential.
Outcome: Shortlist of bankable projects for further due diligence.
Identify the Requirements for Projects:
Objective: To de-risk the investment through rigorous due diligence, laying the foundation for structured project finance.
- Technical Due Diligence:
- Independent geological reports and resource validation (NI 43-101 or JORC compliance).
- Metallurgical testing and mine plan evaluation.
- Infrastructure and logistics assessments.
- Legal Due Diligence:
- Verification of ownership, licenses, and permits.
- Assessment of local laws, mining codes, and regulatory risks.
- Review of any legacy liabilities, environmental issues, or disputes.
- Financial & ESG Due Diligence:
- Historical financials (if applicable) and projected operating costs.
- Review of community relations, environmental footprint, and social license to operate.
Outcome: Investment committee clearance for structuring the deal and moving toward project financing.
Identify the Requirements for Projects:
Objective: To design a tailored project finance structure with Synterra acquiring a strategic ownership stake.
- Equity Participation:
- Synterra negotiates to take an equity stake or ownership interest in the project SPV (Special Purpose Vehicle).
- The stake is sized based on capital contribution, risk exposure, and value-added support (e.g. arranging finance, technical advisory, off-take agreements).
- Project Finance Structure:
- A non-recourse financing model is employed where repayments are tied solely to project cash flows and secured against the project's assets—not the sponsors’ balance sheet.
- Structure may involve senior debt, subordinated/mezzanine tranches, and equity.
- Security & Risk Mitigation:
- Step-in rights, off-take contracts, hedging arrangements, insurance (political risk, force majeure).
- Governance frameworks for JV management and cash waterfall arrangements.
Outcome: Executed term sheet, shareholder agreement, and financing structure aligned with non-recourse project finance principles.
Identify the Requirements for Projects:
Objective: To raise the full financing package and reach financial close with all parties aligned.
- Capital Stack Completion:
- Synterra contributes its committed equity.
- Synterra raises third-party capital (banks, DFIs, private equity, and institutional investors).
- Syndicated funding may include:
- Senior debt from African or international lenders.
- Development finance institutions (DFIs) for concessional or impact-linked capital.
- Trade finance or pre-export finance tied to commodity off-take.
- Documentation & Closing:
- Execution of all finance documents (loan agreements, security packages, intercreditor agreements).
- Regulatory approvals and permits confirmed.
- Conditions precedent (CPs) satisfied for first disbursement.
Outcome: Financial close achieved, funds disbursed into the project SPV, and operations prepared for ramp-up.
Identify the Requirements for Projects:
Objective: To ensure project execution, monitor performance, and position for long-term value creation or exit.
- Project Oversight:
- Synterra assumes an active role on the board or advisory committee of the SPV.
- Project execution is monitored against budget, timeline, and ESG benchmarks.
- Regular site visits and technical audits are conducted.
- Performance Monitoring:
- Cash flows monitored for loan servicing and investor returns.
- Dividends and capital gains managed according to shareholder agreements.
- Transparency in reporting to all stakeholders.
- Exit Strategy:
- Monetization options include:
- IPO or trade sale.
- Buyout by sponsor or operator.
- Streaming or royalty transactions for future cash flow securitization.
- Monetization options include:
Outcome: Successful project commissioning, yielding financial returns for all stakeholders with Synterra achieving value creation through equity, carried interest, and performance-linked upside.
Conclusion
Synterra Capital’s disciplined 5-step approach allows it to turn geological potential into bankable assets—leveraging project finance, equity ownership, and frontier risk management to unlock sustainable profitability in Africa’s resource sector.
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Experts
Investment Partners
We Specialize in investing in mining and natural resource projects across Africa, with a focus on high-potential, underdeveloped assets.
We provide tailored consultancy for institutional and private investors looking to enter or expand within African mining markets. And act as an equity partner in select mining ventures, aligning capital, expertise, and strategic risk with project developers and investors.
Our investment strategy is centred on maximizing value through strategic ownership and customized financing solutions tailored to the unique challenges of resource projects in Africa. We utilize a variety of financial mechanisms to structure deals that optimize both risk and return,
We specialize in high-growth emerging markets across Africa, where natural resource potential is vast but accompanied by complex economic, political, and operational challenges. Our deep knowledge of the region enables us to navigate intricate regulatory frameworks, mitigate risks effectively, and identify lucrative opportunities.
What AreThe Key Benefits?
Emerging Markets
New markets in emerging economies offer exciting substantial growth opportunities, yet the high yields come with risk. This is where our vast expertise plays a vital role in identifying and validating projects, assisting your firm navigate these markets in a profitable and sustainable way.Â
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