SWEDEN Law and Practice Contributed by: Peter Dyer and Alexandra Thörnroos, Wåhlin Advokater AB
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 Nordic Stockholm). Several international explo - ration and mining companies active in Sweden are listed on the Toronto Stock Exchange, while other companies have listings in London, Syd - ney or Hong Kong. This means that the interna - tional securities markets play an important role in the financing of Swedish exploration and mining. 5.6 Security over Mining Tenements and Related Assets Security cannot be obtained directly in explora - tion permits or mining permits. It is not possible to register 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 machinery 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 critical minerals has led to a surge in exploration permit applications in Sweden. In the past 18 months, the Mining Inspectorate has granted some 335 explora - tion permits, which is almost as many as the total number granted in the years 2019–2022. Applicants are both Swedish and international companies. Many applications are for rare earth metals, while others are for minerals such as cobalt, graphite or lithium – all on the EU’s criti -
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 cho - sen not to ratify this treaty, but a current legisla - tive proposal aims to increase local community acceptance in general through better informa - tion 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 pri - vate equity placements) and earn-in/joint ven - ture transactions. A typical 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 inter - est, following which (unless either party makes an exit) both parties contribute to the project in proportion to their interests. A joint venture will then be formed between the companies. For projects developing into actual mining, tra - ditional bank loans and project financing will become more available. In the case of project financing, a package of security will be creat - ed, typically comprising the shares in the pro - ject entity (which in turn includes the permits), floating charges in the business operation, and charges over any real estate and over machinery and equipment.
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