CAUTION: there's a capital squeeze coming soon to a mining company near you.
We're hearing a good deal of talk from the industry that money is getting harder to raise. During the week, two floats were canned due to market conditions while several other IPOs have "to be advised" as to listing dates.
It's no surprise; this always happens when markts go sour.
So far, thank goodness, the closing of wallets seems to be selective. Money is still available but it is starting to look as if investors are being more selective.
If the market weakens further, then fewer and fewer juniors will find cheques being handed over - with the consequential cancellation of drill programs and staff layoffs. We'll be keeping an eye on cash levels when the quarterlies hit next month.
