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Top 5 Mining Capital Raising Sources

Hindmarsh Finance has undertaken a survey with 200 mining executives around the world, mainly in the junior and exploration companies ‘” we have asked them in the current environment, where would they consider raising capital and how do they go about it, here are the 5 destinations mentioned by the mining executives:

Canada

Canada remains as the most sought-after destination when comes to mining & resources investments, there is no shortage of Canadian mining investment firms and they remain very active in international markets.

The challenges faced by Canadian financiers are the reliance and connection with many US investors, and this has impacted their ability to invest in new projects. Canadian investment institutions are very active in gold, base metals and oil & gas sectors, they have been investing in North America, Latin America, Australia and Africa

China

Although many are talking about it, raising mining investment capital from China is not an easy process. First, there is a lack of financial institutions investing in resources, majority of investments were made either by wealthy individuals of end-customers (such as steel mills) and Government sponsored entities.

Government sponsored entities are generally only interested in very large deals that have “national interests” to China, Chinese Government wants to reduce its reliance on foreign imports as much as possible, so they are investing from strategic perspective rather than commercial perspective.

Japan

Japan, on the other hand, led by large private institutions such as Mitsubishi, Mitsui, Nomura ‘” are investing in global resources projects more as in the “western style” ‘” the Japanese investment firms are investing mainly in base metals and increasingly in oil and gas projects as well ‘” they are investing in North America, Northern Europe and Australia

USA

Despite of the economy downturn, US remains as a major capital source for mining investments, many such firms are based in Texas and other oil producing states. The US investment firms are particularly interested in oil and gas sectors, as well as coal and uranium assets. They have invested in Canadian assets as well, and are increasingly active in Latin America.

UK

Over in UK, it used to be the world’s largest mining capital market, some have argued that Canada may have taken over this helm, but this remains debatable.

One advantage for UK investors is it is a popular “destination” for many Middle East investors ‘” who have set up their investment firms based out of UK, as well as Israeli firms and increasingly, from Russian investors as well. The UK AIM market is especially a popular listing exchange for junior resources companies.