This article discusses junior mining and the ability to attract finance from banks. Over the past decade, the rapid economic growth in newly industrialized markets has fueled a strong demand for various commodities (such as iron, coal, bauxite and copper), with a significant impact on their prices. In fact, it is widely accepted that the world has been in the midst of a commodity “supercycle”—a “prolonged (decades) trend rise in real commodity prices, driven by urbanization and industrialization of a major economy.”
This supercycle has been driven by the intensive economic growth in China, which has included massive infrastructure construction, urbanization projects and the use of raw materials for the production of metal-intensive white goods.
The ability of a junior mining project to attract finance is often dependent on where it lies in the development cycle. The closer it is to the exploration stage the more likely it is that it will have to be funded with equity—the likelihood of it securing debt will increase the further it moves through the cycle towards development.
This article provides an understanding of Junior Mining Development and Financing from a Bankers point of view.DOWNLOAD WHITEPAPER