It's Time To Bring Venture Capital Like In Silicon Valley To The Mining Sector
Something that has been on the top of my mind is how much the mining sector needs venture capital companies like Silicon Valley has for technology companies. These Silicon Venture companies provide funding, strategic planning advice and help with marketing.
I’m working on building a venture capital company modeled on how it is done in Silicon Valley for the mining sector.
___________________________________________________________________________
Spotlight On A Top Pick
This section of the written reports is for highlighting sponsors at Rocks And Stocks News and top picks.
Abitibi Minerals has a remarkably great polymetallic project in Quebec that put out news today on an updated resource estimate.
They increased their indicated resource by 62% from 6.9 million tonnes to 11.3 million tonnes with a copper equivalent grade of 2.13%.
They increased their inferred resource by 63% from 4.4 million tonnes to 7.2 million tonnes with a copper equivalent grade of 2.21%.
The indicated and inferred resources include high-grade copper as well as zinc, gold and silver. Combined they have a total of 881.1 million pounds of copper equivalent.
Abitibi Minerals has only had the project for around one year and already dramatically increased the resources that remain wide open for expansion. Based on my homework of their project, I think they are still very early in the advanced exploration and have likely only scratched the surface so far.
____________________________________________________________________________
One of the key building blocks of Silicon Valley venture capital companies is that they have well known technology experts on their team. They provide crucial funding and give small technology companies fantastic advice on how to grow larger.
Plus, they provide wonderful assistance in promotion using digital marketing tools and at conferences showcasing technology startups before they become household names.
The mining sector crucially needs exactly the same kinds of venture capital company as the technology sector enjoys in Silicon Valley. I’m very fortunate to be able to talk to plenty of extremely talented mining company executives through my interviews in front of the camera. Plus, have open lines of communication in emails, phone calls and on video conferencing platforms. I’m talking to them about how to bring this idea to life.
This is sort of a dream project of mine that I hope to move from stealth mode to launch soon.
The goal is to build it with a star-studded team that is well funded with an impressive portfolio of holdings. Structured in a way that doesn’t face redemption issues at precisely the time when funds should be put to work, not sold to fund redemptions. If done right, when it comes to bringing in additional funding instead of being done at a discount to the net asset value, it will be at a premium so it is accretive to early investors and tremendous opportunity for new investors.
The timing for such a venture couldn’t be better as there are few doing this. Valuations of explorers with important discoveries and new mine developers are in short supply and underloved. Small miners with the assets to grow into bigger miners are trading at historically low valuations. Yet, the supply and demand fundamentals have never been better for gold, silver, copper and other metals.
All the best,
Allan Barry Laboucan
