SWEDEN Law and Practice Contributed by: Peter Dyer, Alexandra Thörnroos and Jonna Sjöström, Wåhlin Advokater AB
ments. Investors from all countries are covered by the screening mechanism (including investors from Sweden and other EU member states). However, only investments made by an investor from a country out - side the EU may be subject to a substantive exami - nation by the screening authority and a decision to prohibit the investment or to impose conditions. The potential investor is responsible for filing the transaction with the screening authority. There is no filing fee. The authority then has 25 working days from receipt of a complete notification to initiate an exami - nation. If no action is taken, the transaction is deemed to be accepted. If the authority decides to examine the investment, it has to make a final decision within three months after the decision to initiate the examina - tion. If there are special grounds, this deadline may be extended to six months. 5.3 International Treaties Related to Exploration and Mining Sweden is not party to any particular treaties related to exploration and mining. There have been calls for Sweden to ratify the Indigenous and Tribal Peoples Convention (ILO 169) and to amend the Minerals Act to give more weight to the Sami people’s interests. Sweden has chosen not to ratify this treaty, but a cur - rent legislative proposal aims to increase local com - munity acceptance in general through better infor - mation and dialogue at an early stage, and through benefit sharing using central government funds. 5.4 Sources of Finance for Exploration, Development and Mining For exploration projects, the main sources of financing are the equity markets (public or private equity place - ments) and earn-in/joint venture transactions. A typi - cal version of the latter is where a smaller company controlling a portfolio of exploration permits extends an option to a more senior company for it to earn an equal or majority interest in the project in exchange for expending funds in exploration, according to an agreed schedule. The smaller company will typically not be required to contribute funds until the senior company earns its controlling interest, following which (unless either party makes an exit) both parties con - tribute to the project in proportion to their interests.
A joint venture will then be formed between the com - panies. For projects developing into actual mining, traditional bank loans and project financing will become more available. In the case of project financing, a package of security will be created, typically comprising the shares in the project entity (which in turn includes the permits), floating charges in the business operation, and charges over any real estate and over machinery and equipment. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining The largest Swedish mining operators are listed on the Stockholm Stock Exchange (Nasdaq OMX Nor - dic Stockholm). Several international exploration and mining companies active in Sweden are listed on the Toronto Stock Exchange, while other companies have listings in London, Sydney or Hong Kong. This means that the international securities markets play an impor - tant role in the financing of Swedish exploration and mining. 5.6 Security Over Mining Tenements and Related Assets Security cannot be obtained directly in exploration permits or mining permits. It is not possible to regis - ter a charge, pledge or other third-party interest over the permit. However, permits will normally be held by a limited liability company, which can be subject to a pledge of its shares in favour of the lender and a floating charge in its business. Any real estate held can always be mortgaged as security. Mining machin - ery can be pledged individually in accordance with a special registration procedure. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector The increasing focus on green transition has led to a surge in exploration permit applications related to battery minerals, from both Swedish and internation - al companies. Many applications are for rare earth metals, while others are for minerals such as cobalt, graphite or lithium – all on the EU’s critical minerals
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