It’s tough to find financing for junior mining companies these days, but in the past few weeks several companies were able to attract funding. Focus Ventures (FCV.V), Cancana Resources (CNY.V) and Integra Gold (ICG.V) were able to close oversubscribed placements raising respectively C$4M, C$0.66M and C$13M. Columbus Gold (CGT.V) also closed a C$2M private placement at C$0.40 per share without having to give any warrants to the subscriber. That’s C$20M for junior mining companies that has been raised in just two or three weeks time.
This shows that good projects can still find funding in this market and investors in the junior mining space aren’t ‘gone’, they are still there but are only putting money in good projects.
This summer should be quite exciting for both Columbus Gold and Focus Ventures as both companies are gearing up to release a PEA on their projects. This will be an important first step to prove up the value of their projects. Additionally, Cancana Resources is gearing up to start the first ever drill program on its 100,000 hectare land package.
Disclosure: The author holds a long position in all stocks mentioned in this article. Cancana Resources, Integra Gold and Columbus Gold are sponsors of the website. Please see our disclaimer for current positions.
