Overall, the junior mining sector's struggles continued in 2013.
According to a KPMG report published in October, 15 Vancouver-based junior mining executives said market conditions have "not been favourable" to attracting both retail and institutional investments. Prior to 2012, the executives surveyed said they were routinely successful raising the capital they needed in the markets.
In a junior mining study, also published in October, PwC reported that market capitalization of the top 100 junior mining firms listed on the TSX Venture Exchange had dropped by 44% to $6.5 billion as of June 30, 2013. That drop followed a 43% slide for the top 100 listed juniors in 2012.
But despite that market decline, some B.C.-based juniors are growing, bolstered by exploration programs.
TerraX Minerals Inc. (TSX-V:TXR), Business in Vancouver's top-performing junior, is currently analyzing more than 200 drill holes for gold results on its Northbelt property, a 3,562-hectare plot north of Yellowknife, Northwest Territories.
In late November, TerraX announced a non-brokered private placement of up to 1,700,000 units at $0.45 per unit in the hopes of raising a maximum of $765,000. Virginia Mines Ltd. (TSX:VGQ), a shareholder of TerraX, has agreed to buy 555,556 units for $250,000. The money raised will be used to pay for more drilling in 2014 on the Northbelt property.
Lakeland Resources Inc. (TSX-V:LK) started exploration in October on its Riou Lake Uranium Property in Saskatchewan. According to Lakeland, the new exploration work, coupled with data from previous programs, "will refine and define the targets for an anticipated initial drill program" in the first quarter of 2014.
In November, the company announced a joint-venture agreement with Star Minerals Group Ltd. (TSX-V:SUV), which grants Lakeland an option to acquire two claims adjacent to its Riou Lake property. Under the agreement, Lakeland can acquire the properties by paying Star Minerals $60,000 and issuing 600,000 common shares over a 12-month period.
