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Mega mergers threaten junior financing

The second mega-merger to hit the mining sector in less than half a year threatens to impact one of the few sources of finance available to junior exploration companies. With Newmont Mining to merge with Goldcorp following Barrick Gold’s merger with Randgold Resources, there are fewer majors left to fund explorers, and as they bed down their mergers, their priorities will lie elsewhere as they seek to deliver cost reductions and portfolio rationalisation.

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Newmont Mining CEO Gary Goldberg

Senior miners have been a major source of funding for juniors in recent years due to the demise of Canada's brokerages, the demise of specialist mining funds, dwindling interest from generalist