December 2013 Newsletter


Financings Update

2013 has been a significantly difficult year for many mining companies to raise capital. With share prices falling throughout the year, the capital that typically funds the sector is being spent in other areas. On November 21, provincial securities regulators across the country (excluding Ontario, Newfoundland and Labrador) have proposed new rules in an effort to create more opportunities for TSX Venture Exchange companies to raise new capital from investors. Under the new proposed prospectus exemption, Venture companies would be permitted to raise equity capital from anyone who already owns shares in the company, (regardless if they were purchased in the open market) through a previous financing or an IPO. This new solution will allow companies to rally their existing shareholders and access larger pools of capital to save their investments. We applaud and agree with this new decision from regulators. If an investor has already chosen to purchase shares of the company, they typically understand the risks associated. These investors should be invited to participate in an equity financing where warrants and flow-through shares can entice shareholder participation.

The Venture Radar provides information about TSX and TSX Venture mining companies who are opening, updating and successfully closing financings.

During the month of November, we observed a substantial decrease in the number of financings announced and successfully closed. The Venture Radar posted 82 deals of which 25 successfully raised a combined approximate value of $140 million. Approximately 58 new deals opened during November, with a combined value totaling over $141 million. The largest financing successfully closed for the month came from Trevali Mining for $46 million dollars.



Top 10 Closed Financings in November 2013

Trevali Mining $46m Nov 28, 2013
Mountain Province


$29.4m Nov 27, 2013
Eastmain Resources $5.1m Nov 27, 2013
Corvus Gold $5.2m Nov 26, 2013
Petaquilla Minerals $5.0m Nov 21, 2013
Orex Minerals $1.7m Nov 21, 2013
AQM Copper $3.7m Nov 15, 2013
Romarco Minerals $25.1m Nov 13, 2013
Orezone Gold $5.0m Nov 11, 2013
Lachlan Star $6.5m Nov 08, 2013

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