Junior mining companies hoping to produce lithium, nickel and other green energy metals are worried that Canada’s crackdown on some overseas investors may limit their ability to raise funds for mines and related facilities.
Nearly half of the world’s mining companies are listed in Toronto and the city has long been a premier destination for junior mining companies to raise funds, above even rival exchanges in Sydney, New York and London. “The effect of these orders was to spook investors and likely drive capital and mining entrepreneurs to other jurisdictions,” said Paul Fornazzari, an attorney for one of the companies forced to shed its Chinese investors.
However, the government’s crackdown could rebound and hurt Canada as the mining industry underpins a large part of the country’s economy, investors and analysts say.
Could the weak incompetent Trudeau gang really do this foreign investment restriction without having big loop holes?