SINGAPORE, March 28 (Reuters) – Small miners are finding it increasingly difficult to raise capital to fund new ventures despite the positive demand outlook for several commodities and a world still largely awash with cheap credit.
The problems facing these ‘junior’ mining explorers may also have implications beyond a bunch of seemingly inconsequential companies struggling to progress. How they cope is likely to affect how the mining industry as a whole goes from exploring for new resources to actually producing raw materials.
Under the traditional model, would-be junior miners raised seed capital in order to drill exploration holes to confirm the presence of a resource. These companies then sought listings on miner-friendly stock exchanges, such as those in Sydney and Toronto, and used the money raised from the listing to advance the project. Continue Reading →