Image credit: Handbag

Handbag seeks to boost investments in C3A, a pioneering initiative in Brazil that combines technological innovation and zero CO₂ emissions in copper production from scrap

By Pedro Augusto

Handbag Mining Investments, the first mineral crowdfunding platform authorized by the Brazilian Securities and Exchange Commission (CVM), is looking for new investors – including Canadian companies – to expand the C3A Indústria de Metais em Geral project, which specializes in copper recycling using proprietary technology and with zero CO₂ emissions.

Created to democratize access to mineral investment and support small-scale miners’ research, Handbag connects 100% Brazilian projects with individuals and companies interested in participating in the sector as a type of “shareholder.” “The idea behind Handbag is also to give people, who are not necessarily in the investment field, the chance to contribute to this kind of project,” says Simone Fernandes Colnago, ESG and mining consultant at the startup.

Currently, C3A is the platform’s highlight. The company has developed a process that turns scrap into 99% pure copper cathodes, reusing waste and operating in a closed-loop water system. The sustainable operation already has a strategic partnership with Cecil, a copper scrap supplier, which receives part of this recycled material.

For instance, in the process of manufacturing wires and rods, Cecil uses only grade A copper cathodes. The recycled products from C3A enable this non-ferrous metals company to produce high-standard products for the market.

The agreement between C3A and Cecil follows the Take or Pay model. In other words, the buyer guarantees the purchase of a minimum quantity of recycled product or pays for the volume even if it does not consume it all.

“This project is beautiful,” Colnago says enthusiastically. “My eyes light up every time I talk about it because it aims for zero CO₂ emissions and low solid waste, with water reuse throughout the process,” she highlights, stressing the project’s environmental sustainability.

Handbag’s goal is to raise R$ 3.375 million to expand C3A’s production capacity from two to ten tanks, which will increase the company’s valuation and future dividends for investors. “The investor will then have witnessed the rise of a company they believed in and will also receive dividends once it starts generating profit,” she explains.

The potential for cooperation with Canada is also seen as strategic by Handbag. This means Canadians can invest both in the C3A project and in others available on the platform. “A Canadian company can open a branch in Brazil, fully regulated, to participate in mining projects here and rely on our support for raising investments,” Colnago says.

How to invest and why it can be profitable
To invest in mining through crowdfunding, interested parties need to create an account on the Handbag platform. From there, they can choose the project – whether C3A or others – and contribute starting from R$ 10,000. The entire process is simple, transparent, and can be monitored by investors through quarterly reports. If the minimum fundraising target is not reached, the reserved amount is fully refunded to the investor.

The potential return lies in the company’s increased valuation and future dividends. In the case of C3A, the expansion plan from two to ten tanks will significantly boost production and valuation, benefiting those who join the venture. “Depending on how the project evolves, an investor can receive up to 4.3% of the equity and multiply their initial investment when the project is sold or dividends are distributed,” Colnago explains.