So, fair well the TSX. Two of Minesite's long-time favourites, Firestone Ventures and Patagonia Gold, both announced last week that they will be quitting their Toronto listings, though for quite different reasons.
Firestone, which has been listed on the TSX-V for many a long year, is being bought out in a deal which speaks – reading between the lines of the press release – of a rescue by the bidder of a company that was running out of money. If that's the case, then Firestone is not alone.
Some recent estimates put the number of Canadian juniors that are likely to run out of cash soon at as high as 600. And whatever the precise mechanics of their exit, exit they will, leaving the ranks of the TSX and TSX-V leaner and fitter when the process is complete.
But that's some way off, and there's more pain to come yet before that happens. In the meantime, Patagonia represents another trend away from the TSX. Patagonia's run by entrepreneurs out of London with a long track record of success. It trades primarily on Aim.
Reading between the lines of the Patagonia press release, leads one to a different but related conclusion about the TSX. For Patagonia, there's just no point any more. Where once it was about liquidity and access to capital, now it's simply about extra expense and regulation.
In a similar vein, Toro Gold, another Minesite favourite, made very bullish noises about listing on the TSX a couple of years ago. No more. Chief executive Martin Horgan is now unequivocal that when he brings his company to market it'll be on Aim.
In a sense this move away from Toronto is similar to the way the Aussies moved away from London a couple of years ago. Only this time round, the bear market in mining has been deeper and longer.
The smart money says it'll be another twelve to eighteen months before things turn to the good again. It'll be interesting to see what sort of shape the TSX and TSX-V are in by then. In the meantime, our correspondents in Canada will to provide detailed and in depth coverage of all the major developments.
| 95th Minesite Forum - 11th September 2013 |
95th Minesite Forum
Wednesday 11th September 2013
The Brewery
Chiswell Street
London
EC1Y 4SD
(Nearest stations are Moorgate and Liverpool Street)
Presenting Companies Include:
Kefi Minerals
If you are interested in Speaking or Sponsoring a Minesite event
please contact; Amy Clayton amy@minesite.com
Our forums (which are FREE to attend) enable investors to hear directly from mining and exploration company executives, and to ask questions before they invest.
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