7 www gbr eports c om Glob al Business R eport s ONT ARIO MINING 2018 PRERELEASE Glob al Business R eport s ONT ARIO MINING 2018 PRERELEASE The T SX and T SXV have been c omplement ed by the rise of the Canadian Securities E x chang e C SE which announc ed tha t the firs t half of 2018 w as the s tr ong es t six month period in it s his t or y with signific ant incr e ases in number of lis tings tr ading volume and v alue tr aded c omp ar ed t o the same period in 2017 Juniors such as Ar g o Gold have benefit ed fr om the c os t and eficienc y of the C SE as an alt erna tive t o the main ex chang es f or e arlier s t ag e explor ers tha t r equir e quick liquidity Canada s FT S Flow Thr ough Shar e pr ogr am intr oduc ed by the f eder al g overnment in 1972 is a t ax driven s truc tur e tha t allows an individual or c orpor a tion t o inves t in a Canadian explor a tion c omp any and r ec eive the t ax benefit fr om those expenses being spent on the gr ound f or explor a tion Rubic on Miner als utiliz ed the FT S pr ogr am t o r aise C10M in Mar ch 2017 and C10M in F ebruar y 2018 t o help fund explor a tion f or their Phoenix g old pr ojec t a t the R ed Lak e Camp in northwes t ern Ont ario If the T or ont o s t ock ex chang es pr ovide the pla tf orm f or junior mining c omp anies t o r aise c apit al it is the financial ser vic e ins titutions in the city tha t or ches tr a t e the tr ansac tions Comp anies such as IBK Capit al Spr o t t A sse t Manag ement F r anc o Ne v ada Dundee Corpor a tion and Mackie R ese ar ch Capit al all he adquart er ed in T or ont o pr ovide the b ackbone of the financial dis tric t tha t anchors bo th the Canadian ec onomy and the glob al mining indus tr y In Sep t ember 2018 on the b ack of Gr e a t Be ar R esour c es high gr ade g old disc over y a t the R ed Lak e Camp IBK Capit al br ok er ed a C10 million priv a t e plac ement f or the V anc ouver b ased junior tha t included C6 million of financing fr om R ob McEwen and McEwen Mining who will c ollec tively own 188 of Gr e a t Be ar R esour c es on a p artially dilut ed b asis Citing the tr ansac tion as an ex ample of the mark e t r e viv al Michael Whit e pr esident and CEO of IBK Capit al is c onfident tha t the tide has turned r eflec ting The public mark e t s f or mining and me t als have g one thr ough a period of c ontr ac tion but we see tha t c oming t o end and he ading int o a bull mark e t THE RISE AND INFL UENCE OF CANNABIS CR YP T OC URRENCIES AND BL OCK CHAIN Despit e the r ene wed sense of op timism surr ounding the inves tment clima t e f or mining the c ompe tition f or funding has bec ome fier c er than e ver with the seismic imp ac t of thr ee ne w indus tries c annabis cr yp t ocurr encies and block chain Sinc e cr yp t ocurr encies pe ak ed in Januar y 2018 digit al asse t s have cr ashed losing ar ound U S600 billion in less than nine months Cannabis howe ver has g one fr om s tr ength t o s tr ength ex emplified by the U S38 billion inves tment made by F ortune 500 alc oholic be ver ag e c omp any Cons t ella tion Br ands in Canadian c annabis c omp any Canopy Gr owth in A ugus t 2018 Canopy Gr owth f ounded in 2014 alr e ady bo as t s a mark e t c ap c omp ar able t o Barrick highlighting the sc ale of the imp ac t the c annabis indus tr y has made P a t Dubr euil pr esident of Ont ario b ased junior Manit ou Gold which announc ed a C14 million equity financing in A ugus t 2018 f ollowing it s 25 ac quisition of the Goudr e auL ochalsh def orma tion z one GLD Z belt in 2017 belie ves it is a ma t t er of time bef or e inves t ors c ome b ack t o the c ommodity mark e t Howe ver he is under no illusions as t o wher e the a t t entions of the mark e t ar e curr ently f ocused During a r ec ent T SX c ourse I a t t ended ar ound 80 of the 250 people a t t ending wer e fr om ne w c annabis c omp anies t o be lis t ed on the s t ock ex chang e De an McPherson echoed this sentiment The up tick in mining financing has been slower f or the junior sec t or given tha t ne w sec t ors such as c annabis and block chain have c aused a dis tr ac tion and t ak en some of the risk c apit al out of the mark e tplac e E x ecutive vic e pr esident of IBK Capit al Adam Scha tzk er sees the c apit al cr e a t ed by c annabis cr yp t ocurr encies and block chain c omp anies as an opportunity r a ther than a dis tr ac tion r ec ognizing Mining is no t oriously c yclic al and c an ac tually benefit fr om the gr e a t we alth being cr e a t ed fr om these ne w indus tries Y e ars ag o the do t c om boom t ook inves tment aw ay fr om the mining sec t or which w as la t er r einves t ed int o juniors when equity me t al mark e t c onditions impr oved Denis F r awle y f ounding p artner of T or ont o law firm Orms t on Lis t F r awle y LLP lik ened the c annabis boom t o a magne t pulling in c apit al f ocus and t alent He sugg es t ed tha t r a ther than tr ying t o c ompe t e with the momentum of this ne w indus tr y junior mining c omp anies should pr esent themselves as a t tr ac tive op tions f or the inves tment of the v as t amount of ne w we alth being cr e a t ed explaining Inves t ors will w ant t o diversify their holdings and many of them her e in T or ont o have deep knowledg e and expertise in the mining indus tr y so will be open t o int er es ting opportunities