Control Risks’ country risk assessment and on the-ground-expertise provided support to a mining company concerned about sanctions risk as they prepared for a merger in Nicaragua.  

Our client, a Canadian-based mining company, was considering a merger with a North American company that had an extensive operational footprint in Nicaragua. Before proceeding with the merger, our client wanted to ensure their decision-making processes and risk management plans were informed by a comprehensive understanding of Nicaragua’s risk landscape.  

A bespoke country risk assessment 

The client came to Control Risks for a country risk assessment focused on the mining industry. Given recent sanctions impacting the mining sector in Nicaragua, this client was particularly concerned about sanctions-related risks.

In addition to providing comprehensive analysis of the political, regulatory, ESG, operational, and security environments, Control Risks conducted a targeted assessment of the sanctions risk landscape. This included analysis of sanctions being imposed on Nicaragua by the US, Canada, and other countries, along with the specific implications of these for the client’s potential operations in the country. 

In-country experience

Given the lack of open-source information in Nicaragua, our team leveraged their in-country experience and extensive network of on-the-ground sources – including well-placed contacts within the mining sector – to paint a detailed picture. To ensure our client stayed informed throughout the merger process, we provided weekly updates on our analysis and intelligence gathering.

Our findings determined that the client would not face direct risks. The Nicaraguan government has extensive mitigation measures to address potential implications for key players in the industry. Our final report also included a risk register to summarise the potential materiality of each issue of interest to the client, along with a long-term outlook of each identified issue.

Our assessment allowed the client to obtain an in-depth understanding of the risk environment and the likelihood of sanctions impacting their plans.  Our assessment became a core component in their decision-making process and helped the client move forward confidently with the merger. 

 Learn more about our experience with sanctions and how we can help you

Download the report

DOTCOM - Sanctions Report Download 2024
First Name*
Last Name*
Job Title*
Job Function*
Company Name*
Business Email*
Business Phone*
State (US only)*

You may also be interested in

Contact our experts