SYDNEY: Strata Investment Holdings (ASX: SRT) has entered into a binding letter agreement to acquire 1000433639 Ontario Inc., the parent company of SCP Resource Finance LP and SCP Resource Finance GP Inc.

SCP Resource Finance LP is a leading and independent investment dealer specialising in the global mining sector. SCP, originally established as Sprott Capital Partners, completed a management-led buyout from Sprott Inc. in May 2023. Since the buyout, SCP has maintained and strengthened its focus on precious and energy transition metals, supported by one of the broadest and most experienced investment teams in the mining industry.

The acquisition is aligned with SRT’s strategy of building income-generating investments in the resource sector, including making acquisitions that deliver long-term value. This initial deal is one of several transactions which SRT is considering within the global resource finance sector.

SRT CEO Michael McNeilly commented: “The acquisition of SCP Resource Finance is a first step for Strata Investment Holdings. Integrating SCP’s experienced team and deep industry knowledge aligns with our long-term strategy.

We remain focused on acquiring complementary businesses in the global resource finance industry, ensuring that our investments align with our long-term strategic and financial objectives. We are confident that the partnership with SCP will create significant value for our shareholders.”

SCP Chairman Peter Grosskopf commented: “SCP welcomes the opportunity to grow our business with Strata. In linking with Strata, our investor and corporate clients will benefit from the increased reach and investment presence contributed by Strata and its shareholders. We believe the mining sector is still in the early stages of a long-term growth phase which is required to sustain and improve the production of critical and precious metals. We and Strata will together pursue synergistic opportunities which have the potential to bring capital and other financial services to our global client base.”

Since its formation in 2017 as Sprott Capital Partners, the firm has raised more than $5.3 billion in capital for mining sector clients and provided strategic advisory services to dozens of mining companies and transactions.

In May 2023, Sprott Capital Partners announced the completion of a management-led buyout from Sprott Inc., resulting in the establishment of SCP Resource Finance LP. The transition marked SCP’s evolution into an independent entity, continuing its focus on providing capital markets advisory, investment banking, and private client services to the global mining sector. 

With one of the broadest investment teams in the mining industry, SCP specialises in a range of sub-specialties from base and energy transition metals to precious metals and uranium. 

The firm is distinguished by its independence, specialised knowledge, and strong financial backing, positioning it to maintain its leadership as a resource-focused broker-dealer.

SCP Resource Finance Chairman Peter Grosskopf has more than 35 years of experience in the financial services industry. As the former CEO of Sprott Inc., Peter led the company’s growth from $5 billion to over $20 billion in assets under management between 2010 and 2022.

SCP Directors Dave Wargo and Fil Martins bring decades of investment, research, and investment banking experience to the combined Strata team.

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