Denver Gold Forum / XPL-DEV 2016

Private Equity has become a dominant form of funding for the minerals industry. Tightening of bank regulations in the wake of the Credit Crash forced traditional lenders away from this sector. Weak metal prices also rotated investors away despite the world’s population continued growth and attendant demand for metals. The lack of equity and traditional bank funding has created a void that the PE firms are filling. This presentation will address the rise and evolution of PE financing and its ramifications to mining companies and investors.

Key take aways

• PE funding is filling a critical need.
• PE companies are evolving through the creation of new products.
• Companies need to do their homework when engaging PE groups due to the wide variety of products available.

Mining companies — especially those at the exploration or development stages — have struggled to raise capital over the past 5 years. Traditional methods of raising money have had a low success rate. Alternative forms of financing are gaining popularity. Automated online (“crowd funding”) financing platforms may soon be viewed as viable alternatives to traditional equity financing. Many other industries have successfully raised capital through these platforms. Red Cloud Klondike Strike’s mining-centric online financing platform is the first of its kind to connect a fresh and widespread investor base with select mining companies.

Key takeaways:

• What is equity crowd funding/how does it work?
• What are the advantages/challenges (address regulatory regime)
• Can it work for mining?