The Financial Post reports in its Thursday, May 14, edition that after a 900 percent rally in Millennial Potash last year, family offices are now entering the risky world of early-stage mining ventures.
A Bloomberg dispatch to the Post reports that Millennial has attracted a group of ultra-high net-worth clans that are increasingly bypassing traditional funds to take direct stakes in critical resources. Millennial is developing a potash project in Gabon and has no other revenue.
Millennial chair Farhad Abasov says: "We have actually seen very unusual interest coming from family offices. Usually, we don't see a lot of this capital coming into the junior mining sector."
The investment push is led by the Quaternary Group, a Singapore-based investment entity representing Ross Hamou-Jennings, the former Asia chair of Cargill. Quaternary owns 25 per cent of the potash miner, and Mr. Hamou-Jennings is using his industry knowledge to bridge a valuation gap he identified in the company.
He views potash as an essential, $30-billion (U.S.) niche market where global powers like the United States and China lack self-sufficiency. The U.S. added potash to its list of critical minerals in November, boosting Millennial's shares.
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