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Mining 2021 – Market windows and accessing capital

Author(s): James R. Brown, Alan Hutchison

Dec 13, 2021

A key consideration for mining companies seeking capital in 2021 was the elusive “market window.” Despite relatively strong commodity prices and market sentiment (particularly with respect to inflation), there were defined periods of inactivity and a rush to raise capital when the market window opened. The market was then strongly biased towards established issuers, leaving junior issuers still seeking much-needed capital.

New entrants to the market generally fared worse, despite a strong initial public offering (IPO) market in Canada, which did not seem to extend to the mining industry. This has forced many companies looking to go to market by means of an IPO or reverse takeover transaction (RTO) to adjust their business plans to maintain financing readiness...