Canadian Mining Journal

News

COMMENT: Is money finding its way into mining?

Attracting investors has been exceptionally difficult for juniors over the last two years, but now there seems to be a tiny uptick in activity. Today several news items concerning private placements crossed my desk, and most of them were of the...



Attracting investors has been exceptionally difficult for juniors over the last two years, but now there seems to be a tiny uptick in activity. Today several news items concerning private placements crossed my desk, and most of them were of the seven-figure size.

Toronto-based Carpathian Gold has floated a private placement that grossed almost $19.5 million. The company preparing the open pit Riacho dos Machados (RDM) gold project in Brazil for start-up this year.

Pretium Resources of Vancouver closed a $15-million deal for 225,000 flow-through shares. The money will be used to explore the newly discovered Cleopatra gold vein at the Brucejack project 65 km north of Stewart, BC.

With the third and final tranche of its private placement closed, Integra Gold Corp. of Vancouver has raised a total of over $4.36 million that it intends to use the proceeds for work at the Lamaque gold mine in Val d’Or, QC.

Vancouver’s Spanish Mountain Gold is raising $3 million, half through the sale of common share units and the other half through flow-through units. The company is testing its flagship Spanish Mountain gold project in southern central British Columbia.

Quaterra Resources of Vancouver says its private placement has been oversubscribed. It is looking at US$2.98 million with which to advance its Yerington copper property in Nevada.

Toronto-based African Gold Group is raising $1.5 million through the sale of units (one share plus a purchase warrant for one-half of a share). The company needs the money to continue work on the feasibility study for its Kobada gold project in Mali.

Goldstar Minerals of Toronto is also raising $1.5 million through flow-through units. Again, each unit includes one share plus a purchase warrant for an additional half share. The proceeds will be used for eligible Canadian exploration expenditures. The company has two base metal prospects in Quebec.

The other two notices that arrived were from Dios Exploration ($150,000) and Thundermin Resources ($220,000).

Small, six-figure placements such as these have been occurring frequently even in these tight money times. But raising millions has been the purview of producers or at least companies who are nearing production.

These are the first juniors I remember in quite a while raising more than a million dollars. Certainly there are others, but for seven such placements to hit the inbox on the same day is noteworthy.