SYDNEY – Nov 2 A pair of former miners are hoping to launch a crowdfunding website in Australia for small mining companies struggling to raise capital via traditional outlets as lenders turn their back on the sector.
Crowdfunding in Australia to raise equity is prohibited under the nation’s Corporations Act. The founders of Mineral Intelligence Pty, however, are counting on this to change by the end of the year under pro-business initiatives being considered by lawmakers.
U.S. securities regulators approved new crowdfunding rules on Friday, allowing start-up companies to raise money for the first time from mom-and-pop investors over the internet.
Over the past three years, tens of thousands of jobs have gone in Australian mining, once the nation’s economic engine, while some executives have taken pay cuts or forsaken bonuses to support the bottom line in the absence of fresh capital.