Evy Hambro has exposure to scores of Australian miners across his multiple natural resources funds at BlackRock, but when quizzed about the most exciting ASX-listed juniors, he is quick to respond.
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"The most recent royalty transaction we've done is the one with Avanco. That is a really, really exciting company," he said.
Avanco Resources is a $151 million copper aspirant with a single-page website and little focus on promotional work.
It has been toiling away on its exciting Antas North deposit in Brazil's Carajas region; a part of the world better known for its iron ore mining. Antas North is expected to cost $70 million to build and will deliver 12,000 tonnes per year of copper and 7000 ounces per year of gold when it comes into production in 2015.
A second stage of the project should more than double that production rate at low costs.
Hambro, who manages the world's biggest mining funds with more than $US20 billion under management, has exposure to Avanco via a 12 per cent shareholding and a $US12 million royalty deal.
The royalty deal was finalised in July, and will give BlackRock 2 per cent of all revenues on copper production from Antas North, and 25 per cent of all revenues from gold production. It will also be entitled to 2 per cent of revenues from any further projects that emerge from exploration on Avanco's extensive tenements in Carajas.
It is not the first time Hambro has struck such a royalty deal; his funds did a similar royalty streaming deal with UK junior London Mining, which is exporting iron ore from Sierra Leone.
Hambro says Avanco is "well managed and on the cusp of going into development".
"To be going from an exploration company to a development company and hopefully to a producer at some stage in the next 12 months or so, is a really exciting outlook for them," he said.
"For us to be able to purchase a royalty on those assets and give the company the money it needed to be able to develop its first project unlocks value for shareholders," he said.
But like any junior in a developing nation, risks are inherent.
Other Australian juniors in Brazil have found that nation's regulatory system to move at glacial speed, and Avanco's development schedule is ambitious. Hambro stresses that BlackRock's exposure to Avanco is through a broad and balanced portfolio.
Avanco managing director Tony Polglase said his team was experienced in Brazil, with both he and chairman Colin Jones fluent in Portuguese.
Mr Jones has also completed decades of consulting work in Brazil with clients including the nation's biggest miner Vale.
Hambro is not the only big name to have taken an interest in Avanco, with Glencore Xstrata owning 12.22 per cent while new private equity play Appian Natural Resources has 11 per cent.
