What Financial Institutions Look For In Small Mines Development

Mine developers commonly undertake projects that require more funds than they can invest themselves. From that point until they are able to complete a "bankable" feasibility study, they require access to venture capital. In the United States, most venture capital has been provided to the small mining segment of the industry through tax advantaged limited partnerships. Recent changes in Federal tax law makes other forms of financing competitive, and the use of corporations and private and public offerings of shares may soon become more popular ways of securing venture capital. A number of new financial services firms have entered the mining finance business in recent years. They provide mine developers with access to venture capital.