Iolair International wishes to create a mining investment fund, which would raise capital for small gold mining companies that struggle to obtain loans from banks under present difficult market conditions.
In recent times larger scale miners have found it easier to raise capital for expansion and development. However, smaller gold mining companies struggle to raise funds. This is since many banks refuse to lend to them. The few banks that do lend, require high upfront costs which is not commercially viable. As a result of this, there is a funding gap which Iolair has the potential to exploit.
Iolair’s main objective is to create a specialist investment fund which will focus on lending to small mining companies. The supply of adequate finances will allow the small mining companies to generate production and also increase the scale of their deposits. In addition, mining companies will be incentivised to accept a third-party loan since they will not be faced with large upfront costs that occur when acquiring a loan from a bank.