There are alternative means of funding exploration projects in Africa, writes Leon Louw
Funding is the main factor that hampers junior exploration projects in Africa. With traditional institutions reluctant to fund explorations projects, new financing models will become increasingly important to develop mines of the future, according to Olebogeng Sentsho, CEO of the Simba Mgodi Fund.
Sentsho says her company has been looking at alternative methods like crowdfunding and blockchain technology to finance projects and has assisted nine companies, mostly in the coal mining space, since its inception.
“Exploration companies also have to become better at telling their stories, so that non-traditional funders have a better understanding of what they do,” she said. Sentsho spoke at the Junior Mining Indaba that took place in Johannesburg, South Africa on 4 and 5 June 2019.