Donner/ financing /junior resource sentiment/Quebec ...
posted on
Jul 02, 2013 01:46PM
Anyone who has spent even a marginal amount of time investing in junior mining resource stocks has read/heard words by Brent Cook (or other economic geologists such as Lawrence Roulston ) to the effect that only ~1 in 1000 mineral properties actually progress on an annual basis to the stage of becoming an economic discovery . Donner is one of the select few that has sucessfully run the gauntlet, accumulating numerous accolades along the way ( Prospector of the Year – 2007, Outstanding Exploration Award – 2008, Mines and Money London, Development of the Year – 2010, Quebec, etc.) , and has justifiably been held up as a "Shining Example" (as one article has recently alluded to : http://www.theminingletter.com/?p=1174).
Given the state of the junior resource market and the high probability that the herd of TSX-V companies will be culled by necessity, many retail/non-institutional investors will likely never return to the sector. If a company that has played a major role in bringing a mine into production on time and on budget, cannot provide a decent return on investment for its original investors, then where does that leave the remainder of the struggling pack? The sector really needs some positive success / "Poster Boy " companies , as does the mining jurisdiction that is Quebec, given the negative sentiment it has accrued from its newest royalty proposal.
Thus, it would seem to behoove the Quebec goverment to provided a bridge loan in an instance such as Donners , if in fact such a loan is required at this time. If not from the government , perhaps they should be looking at other funding sources such as that alluded to in this article: http://www.mining.com/junior-miners-in-quebec-get-a-push-with-new-250-development-fund-62497/
Cheers, Luker