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.
Use of funds
Close hedge book
Purchase portion of Pascua Lama silver output
Build Canadian Malartic mine
Finance the Young-Davidson mine development
Debt repayment and mine development
Advance the Angostura project
North American Palladium
Exploration at closed Lac des Iles mine
Copper Mountain Mining
Development of Copper Mountain project
Exploration in the Kirkland Lake Gold Camp
Exploration and metallurgical tests at Myaniquel project
Exploration and development of the Quebec project
Exploration and general corporate purposes
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.