Crowdfunding In The Mining Sector

Although a sense of optimism seems to have caught up to the mining industry in this post-federal budget announcement period, the quest to find funds to finance mining ventures remains challenging. While various alternative financing tools, such as streams, off-take agreements and royalties, have been on the rise and increasingly relied upon, there seems to be a constant interest in new financing tools. Mining companies that have turned to a crowdfunding platform to finance their ventures are certainly evidencing this trend.

Crowdfunding is different from the traditional and alternative financing methods previously mentioned because it uses a web-based platform to raise relatively small amounts of contribution from a large pool of registered users. Traditionally associated with philanthropic projects, new technologies, entertainment and media, equity crowdfunding platforms are now emerging in the mining sector. Under this financing method, investors can purchase