Robert McLeod jumped on the first opportunity he saw to raise exploration dollars through crowdfunding. “In any industry, you have to be innovative to survive. Getting in and trying something new is always a good thing,” the chief executive of IDM Mining Ltd. said in an interview.
IDM is poised to be the mining industry’s first major crowdfunding success story. The company is raising $10 million, in part through crowdfunding from retail investors, to fund a drilling program in northwest British Columbia.
There could be many more deals of this nature to come. Investment dealer Red Cloud Klondike Strike Inc. has set up a website to solicit funds for junior mining vehicles directly from retail investors. Klondike Strike has three other deals on the go in addition to IDM, and chief executive Chad Williams said there are numerous others in the pipeline.
“It’s going to change the face of how mining companies raise money. There’s absolutely no doubt in my mind,” he said.
For many investors, the idea of buying junior mining stocks through crowdfunding sounds strange. It is certainly not the sort of thing the founders of Indiegogo or Kickstarter were thinking of when they set up their platforms.
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