Different Ways to Finance a Mining Project from Exploration to Production

Mining finance is a multi-phase game. What works at exploration doesn’t fly at production. If you're looking to fund a project from scratch — whether it's gold, copper, nickel, or rare earths — you're going to need structure, capital, and credibility. No one funds speculation anymore. They fund plans.

Stage 1: Pre-Exploration and Early Survey Work

This is where most people get stuck. You have a license, maybe a past-producing site, and local knowledge. But unless you can raise early capital for surveys, assays, and JORC-compliant resource reports(or NI 43-101 in Canada), no serious investor will even look.

At this stage, friends and family, angel investors, or seed-stage funders are your lifeline. You’ll need $100K–$500K just to get basic geotech and licensing done.

Stage 2: Resource Definition — The “Bankable” Data

Once you’ve defined your mineral potential and prepared a technical report, you can raise more serious capital. This is where you prepare:

• JORC or NI 43-101 resource report
• Drilling data and recovery projections
• Preliminary economic assessments (PEA)

You’ll need $1M–$3M+ to get through this phase — and that’s where Reg D private placements come in. Financely helps sponsors set up investor funnels, structure the raise, and present the opportunity to accredited investors across the U.S. and globally.

Stage 3: Feasibility and Capital Planning

This is where you separate dreamers from sponsors. You’ll need to commission a pre-feasibility study (PFS), start modeling the capex for infrastructure, and map out permits and local approvals. At this point, credibility matters more than ever.

Can’t afford top-tier advisors? Offer minor equity stakes or long-term profit shares. Build your team before you try to build the mine. Investors back people — not just rocks.

Stage 4: Full-Scale Capital Raise and Offtake Strategy

Now you're approaching a raise in the $10M–$100M range to fund development and production. Here's how to do it properly:

• Hire a placement agent if you can’t raise the capital directly
• Build a layered capital stack: senior debt, mezzanine, and equity
• Secure offtake agreements with buyers to guarantee future revenue

At this point, you need a professional-grade deck, virtual data room, and a clear timeline. We help our clients prepare investor-ready presentations and distribute them to capital providers aligned with mining, commodities, and emerging markets.

Stage 5: Exit Planning and Long-Term Monetization

Once you're nearing production or have proven reserves, your exit options open up:

• Reverse merger with a listed shell (often on TSX, ASX, or OTC)
• Strategic acquisition by a major miner or fund
• Royalty or stream financing as alternative liquidity

You can either build for cash flow, or exit into a public vehicle. Either way, the foundation is credibility, structure, and proof of reserves.

Different Ways to Finance a Mining Project — From Dirt to Deal

At Financely, we help mining project sponsors structure and raise capital across the full lifecycle — from early-stage JORC/NI 43-101 technical reports to Reg D private placements, offtake-backed funding, and strategic exits like reverse mergers or royalties. We help build investor funnels, hire credible teams, and coordinate capital raises that make sense for the stage and jurisdiction.