Securing finance is proving to be a difficult task for base metal juniors due to banks growing cautious about lending to miners
. Conventional funding routes for small to mid-cap mining companies are closed or considered problematic for now.
“It took us 18 months to get financing. It was not easy. It took us a while before we realized that the banks are never going to be there [to finance],’’ Wayne Taylor, chief executive officer of Australia-based Heron Resources told Metal Bulletin in a recent interview.
The company mainly oversees the Woodlawn zinc-copper mine, one of the few new zinc projects fully funded up to production in the market.
Closed 20 years ago due to low metal prices, the revived operation is expected to deliver 40,000 tonnes of mined zinc every year, starting in 2019 at the earliest.
Woodlawn is considered a ‘brownfield project’, a past-producing mine that can often...