Why Entrepreneurs Struggle to Raise Capital for Their Mining Concessions

Mining is full of dreamers with a concession license and little else. They approach investors with one pitch: “I have the license, you put the money, we split the profits.” No budget, no technical work, no equity already deployed. This mindset is entitlement dressed up as opportunity. And it kills credibility immediately.

1. The Entitlement Problem

Too many entrepreneurs believe that holding a concession is enough. They expect geologists, lawyers, and financiers to work for free until the mythical “billion-dollar resource” is proven. They call it a “win-win” partnership. In reality, it’s one-sided: the investor puts up all the capital while the entrepreneur risks nothing. If it fails, the concession holder shrugs. If it succeeds, they demand half the upside. That’s not partnership. That’s charity.

2. Real Estate Developers Show How It’s Done

Contrast this with a serious real estate developer. They don’t wave around an empty plot and demand investors fund everything. They secure zoning, pay architects, line up anchor tenants, and commit equity. They create value before asking for outside money. That’s why banks and funds take them seriously. In mining, the same rules apply: no skin in the game, no deal.

3. The “Win-Win” Illusion

The classic mining pitch sounds like this: “You fund exploration, I give you half of a billion-dollar mine.” It’s pitched as a fair split. It isn’t. It’s a concession holder trying to offload 100% of the cost and risk while keeping a free carried interest. Investors see straight through it. That’s why these projects never raise capital.

4. How Projects Are Actually Funded

• Exploration: License fees, baseline surveys, drilling. $1M–$5M for a credible NI 43-101 or JORC report.
• Studies: Scoping, PFS, DFS. Another $10M–$30M depending on complexity.
• Development: Mine, plant, and infrastructure. Hundreds of millions.
• Operations: Working capital, hedging, and contingencies.

Each stage costs money. Seed equity, joint ventures, or early private rounds fund the front end. No investor touches development finance until exploration and studies are already de-risked. That’s the reality.

5. The Real Cost of Entry

A concession without budget is worthless. The entry ticket is at least $500,000–$2,000,000 just to prove the license is real, pay geologists, and complete early studies. Until that money is spent, the project has no credibility. Investors expect sponsors to prove they can carry that burden before talking about big checks.

6. Why They Complain When Others Succeed

The same entrepreneurs who refuse to fund their own projects often complain when other companies IPO and make millions. They call it exploitation, unfair advantage, or say “the big players control the system.” In reality, those companies took the risk. They spent real money on exploration, hired teams, burned cash for years, and put their own capital on the line. That’s why they earn the upside. Success isn’t exploitation. It’s the reward for taking risk.

7. The Takeaway

Mining isn’t magic. Licenses don’t self-fund. Without budget, without technical work, and without risk capital, a project is dead before it starts. If you want serious investors to listen, behave like a sponsor: put in money, build a plan, and show skin in the game. Otherwise, you’re just another license holder chasing free rides—and serious capital won’t waste time on you.

Disclaimer: This article is for information purposes only. Mining carries geological, operational, legal, and market risks. Financely does not guarantee funding. All capital raising is subject to underwriting, investor appetite, compliance review, and market conditions. Seek professional legal, tax, and technical advice before pursuing mining finance.