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.
Comments