Limited recourse financing techniques reduce the financial exposure of equity holders to major mining projects by transfering some of the risks to the banks which provide loan funds for project development. This can only be achieved by a clear understanding of the principles involved. Engineering and management decisions on how the resource is to be developed and extracted must be made in the light of lender's requirements. The structure of sales contracts, joint venture agreements and many other documents can be important in limited recourse financing. If projections show that the debt can be repaid from project cash flow, loan agreements and other arrangements can restrict lenders ability to look to the equity holders for repayment of project loans.