Can you give an overview of the developments at Ormston List Frawley LLP over the past year?

Ormston List Frawley LLP (OLF) continues to be involved in the mineral resource and exploration space. Market conditions are currently difficult, and many exploration companies are facing challenges with raising capital. However, most of our clients in this space raised enough capital when markets were more conducive to capital-raising, and they are still financially able to advance their projects. OLF has had a quiet year in terms of new transactions and developments in the mineral resource space, but we are seeing clients consolidate their ownership interest in projects and improve their knowledge and exploration results for their properties. What are the biggest challenges facing mining companies in Ontario, and what advice would you give them to overcome them?

The biggest challenge is that mineral projects take a long time to explore and develop, while markets offer comparatively short windows for financing. I would advise companies to be prudent and patient, to focus on the fundamentals, and to build a good team. Companies should also look at succession planning and ensure that a talented team is in place for the longer term. Do you foresee a big consolidation period happening amongst the mining companies in Canada?

I expect that current conditions will also encourage consolidations or other strategic re-positionings. There are many pressures on the industry that could cause people to consider combining projects with those of other companies, or moving certain projects into different or new companies so as to promote a more coherent plan and market identity that focuses on a clear set of minerals. I think companies should always be nimble and look for opportunities to better position and focus their plans and identities in light of market conditions. What would you like to see changed to improve the mining industry in Ontario, particularly critical minerals?

One thing that is remarkably clear in Ontario’s 2022 Critical Mineral Strategy Report is that there are only a small number of sites with refining and smelting capacity in the province. Both Ontario and Canada are working to build a complete critical minerals value chain. We must develop more refining capacity in the province. This would solidify the value chain and improve the economics of Ontario and Canadian exploration and mining companies by introducing certainty and reducing transportation costs. It will be interesting to see if any government initiatives can marry institutional capital with the development of industrial processing, which should further develop and strengthen the critical minerals value chain within Ontario and Canada. How can junior mining companies make the financing process as smooth as possible from a legal and internal perspective?

Mining and exploration companies need to ensure that their reports and records are organized and accessible to allow them to quickly pivot and seize upon investor interest by making those records easy to review in a coherent manner. If the financing sought is through a public transaction, that ongoing organization is even more critical. Companies often get frustrated by the time it takes to go public or complete a significant transaction, but in many cases, a significant amount of the lead time is spent organizing company and project records so they can be reviewed and understood. Companies also need to ensure that their property ownership rights are clearly established and that they have satisfied their obligations under the agreements or laws whereby they acquired those projects. I would also urge that companies periodically refresh the geological data on their properties so that they are not relying on outdated information when embarking on a transaction. Having everything organized and updated does require time and money. However, it will pay dividends for companies by allowing them to move quickly and seize opportunities. What are OLF’s key priorities going into 2024?

A priority for OLF will be to look for opportunities for our clients to position themselves for the future. We will also work on advancing our skills at every level of our team. We will invest time and effort in training our team so that everyone understands what our clients need.