Canadian Mining Journal

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CANADIAN PERSPECTIVE: Mining companies top up treasuries in September

Mining takes money, and finally real money is finding its way into the treasuries of miners large and small. J...


Mining takes money, and finally real money is finding its way into the treasuries of miners large and small. June, July, August … the third quarter looked to be shaping up as another stretch with no one willing to invest in mining. Then beginning in mid-September, the taps were opened and dozens of deals were completed.

 

Here is a list of the largest financings that closed in September.

 

Company

Millions

 

Use of funds

 

 

 

 

Barrick Gold

4,319.1

 

Close hedge book

Silver Wheaton

312.3

 

Purchase portion of Pascua Lama silver output

Osisko Exploration

150.0

 

Build Canadian Malartic mine

Northgate Minerals

100.2

 

Finance the Young-Davidson mine development

Minefinders

66.0

 

Debt repayment and mine development

Greystar Resources

63.3

 

Advance the Angostura project

North American Palladium

50.4

 

Exploration at closed Lac des Iles mine

Copper Mountain Mining

50.0

 

Development of Copper Mountain project

Taseko Mines

28.8

 

Credit facility

Queenston Mining

17.0

 

Exploration in the Kirkland Lake Gold Camp

Anfield Nickel

15.7

 

Exploration and metallurgical tests at Myaniquel project

Canada Lithium

15.3

 

Exploration and development of the Quebec project

Galway Resources

12.0

 

Exploration and general corporate purposes

Crowflight Minerals

11.2

 

Continued development of the Bucko Lake mine

 

The foregoing add up to more than $5.2 billion, with the lion’s share going to Barrick. There were also dozens of smaller financings, those from $10 million to as small as $30,000. I guess that means even the juniors are finding money again.

 

The first week of October is showing the same level of activity. The largest deals so far are $30 million for Metalex Ventures and $18 million for Sulliden Exploration, and there were almost 50 smaller deals that closed.

 

All of this is good news for the mineral industry. It points the way for continuing investment and will give much-needed relief to many of the juniors who are vital to the industry’s future.