How To Raise Capital For Greenfield and Brownfield Mining Projects

Mining projects are capital-intensive and investors treat them differently depending on whether they are greenfield(early-stage exploration with no existing operations) or brownfield(expansion or restart of known deposits). Raising money requires matching the stage of the project with the right pool of capital. This guide covers how companies can finance mining ventures through TSX/TSXV listings, private placements, project finance, and strategic investors.

1. Greenfield vs Brownfield: The Capital Raising Gap

Greenfield projects are early exploration plays. They involve grassroots drilling, geophysical surveys, and proof of concept. Investors in this stage are typically high-risk tolerant: junior mining funds, angel investors, and retail investors via public markets.

Brownfield projects are tied to existing operations or known deposits. The geology is partly proven, infrastructure may exist, and the investment is more about expansion or restart. This attracts larger funds, private equity, and banks willing to finance construction or restart costs.

2. TSX and TSXV: The Global Mining Capital Markets

The Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV) are the leading public markets for mining companies. Over half of the world’s listed mining companies are on these exchanges.

• TSXV: Focuses on junior and exploration-stage companies. Ideal for greenfield projects raising CAD 1m–20m.
• TSX: For advanced developers and producers. Attracts institutional investors, larger financings, and analyst coverage.

Many companies list first on TSXV during exploration, then graduate to TSX as they approach production. Investors expect quarterly disclosure, NI 43-101 technical reports, and a clear development timeline.

3. Private Placements

Private placements are a direct way to raise money from accredited investors, mining funds, and strategic backers. In Canada, these can include flow-through shares which give tax advantages to investors in exploration companies. Placements are flexible, quick to arrange, and less burdensome than IPOs. They are especially useful when raising capital for drilling campaigns, feasibility studies, or bridge financing ahead of a public listing.

In private placements, terms are negotiated directly: valuation, warrants, anti-dilution protections, and board seats. For early-stage greenfield projects, this may be the only practical way to raise meaningful cash.

4. Project Finance for Brownfield and Advanced Projects

Once a deposit is proven and economics are demonstrated in a feasibility study, companies can access project finance. This includes debt, equity, and hybrid structures designed to fund mine construction or expansion. Banks and private credit funds look for:

• Bankable feasibility study with NI 43-101 or JORC compliance.
• Offtake agreements with smelters, traders, or industrial buyers.
• Permits and community approvals.
• Experienced management team.

Brownfield projects with existing cash flow may raise structured debt secured against receivables, reserves, or equipment. Greenfield projects at this stage usually still rely on equity or convertible instruments.

5. Strategic Investors and Offtakers

A key source of funding for mining projects is the offtaker or strategic partner. Smelters, refiners, battery manufacturers, or commodity traders often invest directly in projects to secure supply. These deals often involve:

• Equity investment at project level.
• Prepayment finance secured by offtake.
• Joint ventures with local operators.

Strategic investors not only bring capital but also de-risk the project by guaranteeing a buyer for future output.

6. The Financing Timeline

Mining finance follows a predictable path:

• Greenfield exploration: Private placements, seed equity, TSXV listing.
• Resource definition: Follow-on placements, flow-through shares, strategic investors.
• Feasibility study: Larger equity rounds, convertible debt, potential TSX graduation.
• Construction: Project finance debt and equity, offtake-backed prepayments.
• Production and expansion: Senior debt, structured facilities, streaming and royalty financing.

7. Financely’s Role in Mining Finance

Financely helps mining companies raise both equity and debt at every stage of the cycle. We structure private placements for greenfield exploration, advise on TSX and TSXV pathways, and underwrite project finance mandates for brownfield expansions. Our network includes private credit funds, mining-focused investors, strategic offtakers, and institutions willing to finance credible projects.

For sponsors, the difference between success and failure is not just the quality of the ore body but the credibility of the capital structure. We make sure both line up.

Disclaimer: This article is for information purposes only. Financely does not guarantee funding. All capital raising is subject to underwriting, investor appetite, compliance review, and market conditions. Mining projects involve significant geological, regulatory, and environmental risks. Professional legal and technical advice should be obtained before committing to any financing.