This was about 18 months ago, but, I have read since that the situation is now worse and that there are over 400 of the 500 odd listed small cap explorers on the ASX facing extinction, being unable to raise ANY funds whatsoever. Oil wells in Guatamala???!!! Bless Bronze11 and OUR other "mates".
NATIONAL RESOURCES DEVELOPMENT FUND PROPOSED TO AVERT
EMERGING ‘NON BOOM’ CASH CRISIS FOR JUNIOR EXPLORERS
A national resources development fund paid for by a modest levy on established and profitable mining operations has been proposed by the head of one of Australia’s most successful explorers - to fend off an emerging crisis threatening the long-term sustainability of the country’s so called ”mining boom”.
At the heart of the proposal is providing an innovative source of access to capital exclusively for the backbone of Australia’s mining future – the cash starved junior end of the resources spectrum housing those exploration companies responsible for the majority of new mineral discoveries leading to new mine developments.
The national resources development fund proposal has been floated by Mr Andrew Woskett, the Managing Director of Adelaide-based Minotaur Exploration – the explorer responsible for the Prominent Hill discovery in SA’s Gawler Craton and now home to Oz Mineral’s billion dollar plus producing copper-gold mine.
He says most juniors now have limited access to venture capital and debt funding. The full 100% levy proceeds would go direct to the fund.
His proposal comes as the global economic crisis squeezes the lifeblood out of capital access for Australia’s junior explorers and mine developers, leaving many, he says, facing extinction or merger, despite the quality of their exploration tenements and prospectivity.
“There is nothing more serious right now confronting those in the junior space of the equities market than the complete absence of risk capital available for explorers and small cap project developers,” Mr Woskett told South Australian Chamber of Mines and Energy
“The consequences of capital starvation to the overall well being of our so called booming resources sector is intensely serious and with negative global equities sentiment as it is, we need to be more unconventional in resolving how we alleviate this funding gap,” Mr Woskett said.
“A national resources development fund can fill that gap.”
Ms Woskett warned that there was a reality disconnect between the media hype about the ‘mining boom’ - and the facts.
“What we are experiencing is a CLAYTON’S BOOM where junior explorers and small mine operators are facing extended financial pain, if not obliteration, as, simply put, for most in the resources sector, there is no boom.
CTR Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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