Sierra Resource Group Inc. (fka SIRG)

[lmcat]

Again, SIRG has the proven copper reserves and they are often used for funding the development of a copper mine.

Red Kite Exploration Fund and others provide this type of funding.

Example:

May 9, 2012, Vancouver, BC -- Curis Resources Ltd. (TSX: CUV) is pleased to announce that it has executed definitive legal agreements with RK Mine Finance Trust I ("Red Kite") for a senior secured bridge loan facility and copper cathode sale and off-take agreement.
Under the terms of the signed off-take agreement, Curis will sell to Red Kite, on a take-or-pay basis, 25%, or if the Extension Option is exercised, 30% of the Florence Copper project's copper cathode production for the life of the project. The off-take agreement has been structured such that copper cathode produced at Florence is to be purchased by Red Kite at a price consistent with London Metal Exchange (LME) market price quotations, subject to certain discounts.

This is how SIRG would sell copper they have not yet produced!

I hope this clears this up for you.


This is of interest since it is Arizona where SIRG's mine is located.

Arizona PSPRS hires Red Kite Explorer fund
The $6.1bn Arizona Public Safety Personnel Retirement System (PSPRS) has approved an investment in the Red Kite Explorer fund, a metals-trading hedge fund based in Sydney, Australia, HFMWeek has learned.

PSPRS committed $40m to the hedge fund on the recommendation of its hedge fund consultant, Albourne America, confirmed Marty Anderson, deputy chief investment officer at the retirement system.

The Red Kite Explorer fund works with mining companies in structuring mezzanine finance and metal off-take agreements, and is managed by Red Kite Australia, part of Red Kite Management.

In November last year, HFMWeek reported that Arizona PSPRS made two further absolute return allocations, investing $40m each with the LSV Special Opportunities Fund III and the Luxor Capital Partners fund.

Last year, PSPRS chief investment officer, Ryan Parham revealed plans to pursue a risk-orientated hedge fund asset allocation strategy to HFMWeek. The plan aims to add hedge funds in many areas and strategies including credit, real assets, GTAA and portable alpha, as well as its 5% absolute return allocation.