U.S. resource private equity firm Denham Capital announced its partnership with JDS Silver Inc, a Vancouver-based mining company. Under the terms of the partnership, Denham provided US$65 million in funding to JDS Silver to complete construction and bring into production the Silvertip Mine in northern British Columbia. The property, a high-grade silver-lead-zinc mine, has been under construction since late 2015 and is expected to begin production this month. Established in 2012, JDS Silver is led by CEO Jeff Stibbard. Denham said the company is its first investment in the Canadian mining industry.
Denham Capital Announces Partnership with JDS Silver
Firm’s First Canadian Mining Investment Allows Company to Build Out and Bring into Production British Columbia’s Silvertip Mine
September 27, 2016
VANCOUVER, British Columbia–(BUSINESS WIRE)–Denham Capital, a leading resources and energy-focused global private equity firm, today announced that it has partnered with Vancouver-based Canadian mine development platform JDS Silver Inc., providing the company USD$65 million to complete construction and bring into production the Silvertip Mine in Northern British Columbia.
Located within the Silvertip Creek valley in the Tootsee River Watershed, Silvertip is a high-grade silver-lead-zinc mine whose 30 percent zinc equivalent grade makes it one of the world’s highest grade zinc deposits. JDS Silver began construction in December 2015 and expects the asset to begin production in late September 2016. In addition to developing Silvertip’s zinc resources, the company plans to produce silver and lead in concentrate from the mines.
“Working with Denham has been essential in proving the unique model for the execution of a project like Silvertip and we are very proud of our partnership,” said JDS Silver CEO Jeff Stibbard. “The combination of our development and operational capabilities along with the firm’s equity capital and strategic expertise has allowed us to expedite the construction and development of the Silvertip Mine into production.”
Established in 2012 and led by Stibbard, a mining engineer with expertise in world class mine design, construction and operations, JDS Silver is a fit-for-purpose owner- mining company focused on high potential near-term stranded assets in West and North Canada. It identifies unique opportunities and deploys its proprietary value proposition to create projects that will generate value where others fail to see it.
Prior to forming JDS Silver, Stibbard founded JDS Energy and Mining, a full service engineering consulting business, co-founded Western Oil Sands, where he led the production of the 450,000tpd Meskeg River Oil Sands Mine and was responsible for BHP Billiton’s $1bn Ekati diamond mine in Canada’s Northwest Territories. He is joined by a team with more than 100 years of experience in identifying and maximizing the value of stranded mining assets that includes President Brent Gilchrist, COO Kevin Weston, CFO Richard Godfrey and VP of Finance Andrew Malashewsky.
“We are delighted that our first investment in the Canadian mining sector, partnering with Jeff and his team, has led to the Silvertip mine being constructed in a mere nine months. JDS Silver has pulled out all the stops on this one.” added Caroline Donally, Denham Capital Director. “Our partnership with JDS Silver is a perfect example of our team-first approach. Their proven track record, comprehensive engineering and evaluation knowledge were instrumental in bringing this historic mine to fruition, along with our capital. We eagerly anticipate the next stage in Silvertip’s life and look forward to working with this team on future endeavors.”
About JDS Silver
JDS Silver, led by accomplished Canadian mining entrepreneur Jeff Stibbard, targets base and precious metals projects that may be “fast-tracked to cash flow” in northern and western Canada. For more information about JDS Silver, visit www.jdssilver.com.
About Denham Capital
Denham Capital is a leading energy and resources-focused global private equity firm with more than $8.4 billion of invested and committed capital across eight fund vehicles and offices in Houston, London, Boston and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving mining, oil and gas and power generation, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.
Krystal Patout, +1 713-627-2223
Photo courtesy of JDS Silver Inc