Australian Junior Miners Turn To Crowdfunding

Finance and Trade
02/11/2015 10:59

A pair of former miners - Cameron McLean and Joe Treacy - are hoping to launch a crowdfunding website in Australia for small mining companies that are struggling to raise capital via traditional outlets as lenders turn their back on the sector. Small miners and explorers have been deprived of the method in Australia due to fact that using crowdfunding to raise equity is prohibited under the nation's Corporations Act. The founders of Mineral Intelligence Pty, however, are counting on this to change by the end of the year under pro-business initiatives being considered by lawmakers. "The alternative source of funding would be more than welcome not only by the junior sector, but by the industry in general," writes, "as the Reserve Bank of Australia’s latest report, published last month, shows that most small miners are on the brink of bankruptcy as the share of companies at serious risk has risen to levels last seen during the financial crisis."