Open Access
Financing Sources of Exploration Works in the Light of Risk Related to their Activity
Author(s) -
Arkadiusz Kustra,
Barbara Kowal,
R. Ranosz
Publication year - 2021
Publication title -
inżynieria mineralna
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.215
H-Index - 9
ISSN - 1640-4920
DOI - 10.29227/im-2021-01-12
Subject(s) - private equity , business , finance , equity (law) , venture capital , private equity fund , capital (architecture) , project finance , political science , archaeology , law , history
The article presents an overview of the determinants of exploration works and the definition of the role of junior mines in those processes. Junior mines, as special purpose vehicles, focus on the stages of exploration and documenting of the deposits, without going into theoperational stage related to the exploitation. Due to their nature, those entities finance their activities with equity capital in the formof share issues on the capital markets, addressing their proprietory securities to investors who accept a high level of risk. The largeststock exchanges on which the exploration companies obtain the required funds have been identified, and the trends that complementcapital raising, concerning the involvement of private equity funds, have been presented.