Nola Capital Corporation
Energy Financing
Energy financing is primarily used to expand existing reserves, acquire new assets or streamline operations.  However, the most common
mistake made in energy financing is the temptation to not change with the times even at the expense of getting the best rate and locking in
the best terms for as long as possible in today's economic environment.  The unfortunate truth is many energy borrowers are not as
knowledgeable as they should be given the financing alternatives available in today's marketplace.

The future holds a great deal of uncertainty for the world's economies.  However, one constant will be a huge need for sufficient levels of
energy production that are also affordable to the end user.  One of the biggest components of that equation will be the ability of borrowers
to obtain operating capital at the lowest possible cost while also being able to reduce their exposure to traditional lenders' long history of
modifying lines of credit and/or requesting additional collateral at inconvenient times.

We consider projects in the following energy sectors:

  • Oil and Natural Gas Exploration & Production
  • Pipelines
  • Refining

The minimum size financing we do for energy projects is $25 Million.  Financing for E&P projects is typically reserve-based.  Financing for
pipelines and refineries requires an off-take agreement.  Bond financing is one of the best forms of long term financing for larger energy
projects needing at least $100 Million.  
Click here for more information on how bond financing applies to larger energy projects.

All engineering is subject to a third party review during the due diligence process.  High quality engineering studies greatly expedite the
financing process and in many cases are the difference in completing a successful application for financing.  Terms are typically from 3 year
to 10 years and underwriting is aggressive on high quality projects.

* In some situations, a new energy client may request funding on a basis normally offered only to existing clients.  This arrangement has
different requirements for starting the funding process.  The strength of the client’s project is a major factor in determining if this option is
available.  What is needed is a reputable third-party engineering evaluation of the project’s hard assets, strong management and a rock
solid off-take agreement or power purchase agreement from a strong buyer.  The funding is non-recourse and in most situations repayment
may be made before maturity.  
Click here for more information about alternative capital funding for energy projects.
Mining / Energy

Mining Financing
Mining financing has some of the world's most creative types of funding.  However, the foundation of any mining venture is the assets behind
the project and that means the reserve-based analysis must be predicated on high quality third party engineering.  In today's economic
environment, it is also common to require an off-take agreement be in place with a reputable buyer in order for the cost of financing to be
most attractive.  A common mistake many mine owners make is not investigating all types of financing.  
Please click here to see information
about our recent changes to financing precious metals mining projects.

We will consider all types of mining projects but most clients have the following types of ventures:

  • Iron
  • Gold
  • Silver
  • Copper
  • Sand
  • Coal

We prefer ventures where the mine is now operating although we can consider some projects that will be put into operation in a short period
of time. Our terms may be from 3 years to 10 years.  Projects must be located in the United States or Canada and an independent  
engineering report is required.  A NI 43-101 compliant report is required for projects not yet in production.  All projects must have good
documentation.  We are typically able to leverage a project's equity by an average of 3:1 by using creative forms of debt financing.

The minimum size mining financing we do is $25 Million.  Funds may be used for acquisition, development or restructuring debt.  Bond
financing is one of the best forms of long term financing for larger mining projects needing at least $100 Million.  
Click here for more
information about bond financing for to larger mining projects.  Financing options other than bonds are also available for larger projects.

*  In some situations, a new mining client may request funding on a basis normally offered only to existing clients.  This type of funding has
different requirements for starting the funding process.  The strength of the client's project is a major factor in determining if this option is
available.  What is needed is a reputable third-party engineering valuation of the project's reserves, strong management and a rock solid off-
take agreement from a strong buyer.  The funding is non-recourse and in most situations repayment may be made before maturity.  
Click
here for more information about alternative capital funding for mining projects.