Is Crowdfunding The Go-To Financing Option For Mining?

Red Cliud Klondike Strikes thinks so. See how the Canadian company is harnessingthe power of crowdfiunding to leverage financing for the mining industry.

For decades, mining has endured its share of ups and downs. This level of volatility created financing issues for both current and potential operations, often making it difficult for companies to plan ahead and invest as conditions fluctuated.

The newest investment trend has emerged as a direct result of the need for flexible, fast results. Crowdfunding has long been popular with tech startups but has only recently found a niche as a funding source for mining organizations.

Venture capital has become increasingly difficult to come by in the mining industry, with fewer large lenders willing to take on the risks associated with mining enterprises.

To fill the venture capital void, Chad Williams, President and CEO of Red Cloud Klondike Strike, Inc., decided to explore crowdfunding as a source of capital for mining, bypassing typical funders and allowing individual investors to take advantage of the opportunities afforded by involvement in mining operations.

STARTING IN CANADA

There are a few reasons why Canada is the perfect environment to launch this crowdfunding venture. There are several major mining organizations located in Canada. Canadian investors also tend to be less risk-averse.

Investors with available resources are viewed as being willing to see beyond the issues cited by traditional lenders as drawbacks and, instead, pay more attention to growth potential.