MICLA

McGill Research Group Investigating
Canadian Mining in Latin America

Mining for capital on Bay Street

Toronto is the global financial headquarters of the mining industry.Once you invest in shares of the company, you now have equity in the company and you are a shareholder. The value of shares vary depending on the price of the resource, the level of speculation, the number of shares, and the reputation of the corporation. Even if you are not an individual stockholder, if you are Canadian you are almost certainly invested in a mining company through investment institutions such as pension funds, life insurance companies, or institutions such as McGill University.

TSX and TSX-V

75% of mining companies are headquartered in Canada and close to 60% of mining companies around the world are listed on the Toronto Stock Exchange (TSX). This is a representation of over 1,500 mining companies despite the fact that only 40 extractive projects are ongoing in Ontario.

The difference between the TSX and the TSX-V is that the TSX is the senior equity market, while the TSX-V is a public venture capital marketplace for emerging companies (responsible for junior equity). The requirements which determine which exchange mining companies are listed on can be found here: http://www.tmx.com/en/pdf/Mining_Listing_Requirements.pdf

The TSX-V and the TSX have together traded $131,255,249,825 (CAD) in 33,943,316 trades as of Sept 30, 2014.A private company does not sell its shares on financial markets to the public, but rather raises money from private sources. A public company sells shares to the public through stock exchanges like the TSX.

Corporate Structure

Mining companies are corporations meaning that the follow the Canada Business Corporations Act (CBCA). Shareholders of corporations elect a board of directors who supervise the operation of the company. The CBCA requires that the board of directors act in the best interests of the corporation, which most corporations see as meaning maximizing profits.

A corporation can be incorporated in a jurisdiction outside of Canada yet still count as a Canadian company. Business that is being done in Canada is subject to Canadian laws, yet business being done by a Canadian company abroad,is suddenly no longer subject to Canadian laws.