Canadian juniors shifting focus to Africa, away from South America

Roxgold blasting in Burkina Faso (Image from archives)

The State of Mining Finance 2019 report produced by the Prospectors & Developers Association of Canada (PDAC) and junior financing tracker Oreninc, shows Toronto’s stock exchanges managed to bump its share of global exploration capital up to 44%.

However, the value of equity raised by juniors on the TSX and TSX-V decreased by 58% and 23% in 2018 respectively.

There is also a change in the way exploration funds are being applied regionally. Oreninc tracks the intended use of proceeds from financings on Canadian bourses, which showed 60% of funds raised are destined for projects outside Canada.

Notable in 2018 is the year-over-year increase in funds flowing to African projects and the more than $600 million decrease in funds used to explore in South America.

Canadian juniors shifting focus to Africa, away from S. America

Source: State of Mining Finance 2019

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