Hundreds of small mineral exploration companies may have their stock delisted by Canada’s TSX Venture Exchange in the coming month. As commodity prices boomed in the past decade, a flood of new issuers swelled the ranks of the Venture, but the money has dried up over the past 2 years. Hardest hit are the Venture-listed, exploration-stage companies that depend on equity financing to develop their properties to the point where they can build a mine or sell the asset to a major. While the mining sector has always been subject to boom and bust, the potential shakeout could be especially damaging this time. A dearth of companies with proven assets could hit the future supply of many different resources and drive up prices.
Posted on: Sat, 03 Aug 2013 10:56:19 +0000
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