Yesterday, CMJ readers learned how successful Secova Metals has been at raising exploration funds, even though its flagship Duvay gold project in the Abitibi Greenstone Belt lacks 43-101-compliant resources. The company does it the old fashioned way – experienced people looking for gold where gold has been frequently found.
Today, PricewaterhouseCoopers has released its 2015 report on the junior mining sector, Time for Change, urging juniors to embrace unconventional strategies to survive today’s economic challenges. According to PwC figures, the top 100 juniors raised $514 million in equity financing so far in 2015. That number is 25% down from last year. Debt financing fell 27% over the same period. PwC says the junior’s cash reserves are dwindling, averaging only $7 million per company.
Time for Change offers these less conventional means of survival tapped by juniors over the last year:
Whether these strategies will be enough for the survival of all – or even most – of today’s junior companies remains to be seen.
The full Junior Mine 2015: Time for Change report, which includes the latest industry figures and insights from junior mining sector leaders can be found at PwC.com/ca/en/industries/mining/publications/junior-mine-review-of-trends-in-tsx-v-mining-industry.html.