I copied this from another post The 800-strong junior mining and...

I copied this from another post

The 800-strong junior mining and exploration sector has been facing a decline in investment since late 2012, and is now dealing with liquidity that has shrunk "from the size a swimming pool to the size of a coffee cup", says fund manager Lion Selection Group executive director Hedley Widdup.
"There are about 800 companies that fit that junior miner slash explorer banner and we could probably do with cutting that down to about 200," Mr Widdup said.
"It is said that it costs around $1 million a year for these companies to keep the door open and so if every one of those needed $1 million to stay alive, that's $800 million that the market needs to provide for them to do nothing for 12 months. That's an unreasonable number."
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Almost 20 per cent of listed junior miners and explorers have a cash balance of less than $500,000, with half sitting on less than $2 million, the latest annual survey of the sector run by Grant Thornton revealed.
The survey noted that about 74 per cent of listed Australian mining juniors will need to raise capital this financial year, raising questions as to whether there is appetite in the market for that extent of resources investment.


Read more: http://www.smh.com.au/business/mini...ior-miners-20141001-10odpq.html#ixzz3FDhD6VgT