The 'Constricted credit markets' referrs only to the big institutional/bankers etc. The underlying situation is that there are a lot of Venture Capital types out there looking for good long term investments to sink their Billions and Billions into. We are experiencing a delayed action because the people in the know with connections to all this cash are advising patients for what ever reason (I do not know) and thus the cash is being denied to the best Junior Exploration prospects for the time being. Just look around at the best of last Falls pleasant exploration surprises and you may understand my line of thought expressed here.
Old Joe
puppin posted:
Globe and Mail
Posted by: puppin on February 22, 2008 08:41AM
There was a very interesting article in Wednesdays paper. It is about the Mary River project on Baffin Island. 365 million tons of Iron Ore. Estimated to cost 4.1 billion to open it. They are currently signing on with 16 potential partners but none of the majors are involved because an agreement prohibits them from bidding for the company.
The biggest challenge is raising the money. "This is not the kind of asset that is normally in the hands of a junior" "Constricted credit markets have made raising capital exceedingly difficult for junior miners." Kudos to Nemis for getting his dollars lined up. Since 2004 170 million has been spent on the project.
Puppin
