Canadian Mining Journal

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COMMENT: Show me the money

Canadian mine financing occupied much of the talk at the recent Prospectors & Developers Association Canada's annual convention. The topic gets hotter and hotter every year as potential investors are lukewarm at best. Now there is reason to...


Canadian mine financing occupied much of the talk at the recent Prospectors & Developers Association Canada’s annual convention. The topic gets hotter and hotter every year as potential investors are lukewarm at best. Now there is reason to believe that the money is out there and some miners are getting a share.

A browse through the numbers at the Canadian Financing Bulletin (CanadianFinancing.com/mining) finds all kinds of interesting figures to the right of the dollar sign.

In February, deals were closed valued at over $300 million. Many deals worth millions, even tens of millions, were recorded. Here are some of the largest ones.:

  • Banro Corp                              $44.5 million
  • Crocodile Gold                         $18.0 million
  • Golden Reign Resources        $16.6 million
  • Gran Colombia Gold                $14.5 million
  • Highland Resources                $49.5 million
  • mperial Metals                         $25.0 million
  • Luna Gold                                $10.0 million
  • Santacruz Silver Mining           $10.8 million
  • Troy Resources                       $27.8 million
  • Western Pacific Resources     $11.1 million

The high January numbers may be a hangover from the three months prior to February. Many financings were proposed, but none closed.

Another look at this month’s numbers through March 6 also gives rise to optimism. The first week of the month saw approximately $98.6 million raised. If that rate is maintained, the March total could be in the neighbourhood of $415 million. (Calculated using the first five business days and a total of 21 business days in the month.)

Again, here are some of the notable deals:

  • Gold Standard Ventures                      $10.9 million
  • Laurentian Goldfields                           $18.6 million
  • Midas Gold Corp.                                 $11.8 million
  • Roxgold Inc.                                         $25.1 million
  • Serabi Gold                                          $18.6 million

Things are, indeed, looking up for some lucky juniors.

If the February and March closing rates can be maintained, 2014 is looking to be a year in which investors’ purse strings are loosened considerably.


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