en.Wedoany.com Reported - The mining fund established by the province of Mendoza, Argentina, to promote mineral exploration has entered a critical phase, with technical evaluations advancing to screen qualified projects.
Sebastián Piña, CEO of Impulsa Mendoza, confirmed that the province is in the process of selecting geological teams to assess mining rights in the Malargüe Western Mining District. He stated that they are currently in the final stages of identifying technical experts.
Impulsa Mendoza has launched a public tender to hire geological service providers to analyze projects that could be included in this financial structure, which is established under the regulations of Argentina's National Securities Commission (CNV). This process specifically targets projects located in Malargüe that have already obtained approval for their Environmental Impact Statements. The province will select assets from these projects that meet geological and technical conditions for inclusion in the fund.
The fund, named "Impulsando Exploraciones" (Driving Exploration), is a closed-end investment fund designed to channel private capital into the early stages of mineral exploration. Structured under CNV oversight, subscriptions are denominated in U.S. dollars, with an estimated size ranging from $2 million to $100 million. The fund primarily focuses on copper exploration projects in southern Mendoza province, establishing a formal financial structure for the junior mining company stage, which has historically relied on private capital or access to international capital markets.
Under this model, investors contribute capital in U.S. dollars to subscribe to fund shares, receiving a proportional share of the managed assets. Capital is allocated to selected projects through various financial instruments. The fund manager is responsible for overall management and investment decisions, while a custodian entity oversees asset custody and compliance. Impulsa Mendoza serves as the fund's technical and strategic advisor, tasked with identifying and evaluating qualified mining assets within the province.
The strategy aims for diversification through the number of assets and geographic areas to spread the exploration risk of early-stage projects. The fund can invest through various mechanisms, including purchasing shares in project companies, participating in special purpose vehicles, corporate bonds, or loan agreements, with the goal of obtaining equity positions in exploration-related structures.
The geological screening process currently being advanced by Impulsa Mendoza is considered central to the fund's structure and will determine which projects ultimately receive financing. The province aims to establish unified technical standards to evaluate each mining asset's geological characteristics, exploration potential, project status, available information, and legal structure.
Evaluated projects are those that have obtained approval for their Environmental Impact Statements within the Malargüe Western Mining District. This area is one of the key exploration initiatives promoted by Mendoza province in recent years. Concurrently, Impulsa Mendoza is negotiating with the National Securities Commission regarding the fund's final prospectus and regulatory adjustments.
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