A non-corporatized joint venture is the simplest, fastest and generally cheapest form of the joint venture structure; it is a creation of a contract in which the joint enterprise agreement regulates all aspects of the project and the relations between the partners of the joint venture. The ownership structure is based on the common economic interests of each partner of the joint venture in the assets of the joint venture (with a legal title, either by a partner of the joint venture or by a legal company owned between them). This means in practice that where one aspect of the business relationship is not set out in the joint enterprise agreement, the parties cannot rely on corporate or common law to fill a gap and a dispute is more likely. On the other hand, the free nature of the unincorporated joint venture may also be an advantage, since the parties have the greatest contractual freedom to define their relationship and the operation of the joint venture. The registered joint venture is attractive from a liability point of view, since liability should be limited to the joint venture company rather than the shareholders. The form of enterprise may also be attractive if the interests of the company`s partners are not expected to be fully coordinated, as company rules will generally facilitate confrontation between shareholders (although in some cases the protection of corporate rights may erode this situation). “Companies know they need advice to structure an effective joint venture,” says Sunil Kansal, Partner, Consultant, Deloitte Canada. “There are many councils to design an appropriate capital structure and create the shareholder contract. Where joint ventures generally have problems is the operationalization of these structures. “In addition to access to financing, joint ventures can help boys leverage critical expertise, relationships and skills,” says Chris Lyon, Partner, Financial Advisory, Deloitte Chile. “This can enable them to use digital technologies and alternative energy platforms, address sustainability issues and meet growing stakeholder expectations.” In general, a joint venture without gu is the most appropriate for exploration projects in the start-up phase. While this form may work in a development and/or production scenario, in these cases it may be preferable for the parties to adopt one of the other structures. A joint venture based on limited partnerships is a hybrid approach that is exclusively a creature of a statute, which depends on the jurisdictional partnership provisions in which the partnership is established.
While it is probably the most complex and costly entity (which requires a single limited partnership agreement in its own right and often a separate shareholder pact for the co-operating partner), it may, if properly structured, offer similar flexibility and tax benefits to a joint venture without its own legal personality, while alleviating some of the disadvantages contained in the form taken, while offering limited liability protection. PREMIER GOLD MINES LIMITED (PG:TSX) is pleased to announce that there is a joint venture agreement (the “agreement”) with Red Lake Gold Mines (“Red Lake”), a subsidiary of GOLDCORP INC. (G:TSX, GG:NYSE) has signed up to explore a strategic land package in the fertile Red Lakestone Green Belt in northwestern Ontario. Premier Gold Mines Limited is a Canadian exploration and development company with a variety of real estate holdings, including several projects and deposits in northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining warehouse, two of them are operated in a joint venture with Goldcorp Inc. (TSX:G).