Financing Sources of Exploration Works in the Light of Risk Related to their Activity

Abstract

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 the operational stage related to the exploitation. Due to their nature, those entities finance their activities with equity capital in the form of share issues on the capital markets, addressing their proprietory securities to investors who accept a high level of risk. The largest stock exchanges on which the exploration companies obtain the required funds have been identified, and the trends that complement capital raising, concerning the involvement of private equity funds, have been presented.