TMX Investment in MinesOnline.com Paves Way for New Listings
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By Justin Yan
Representatives from MinesOnline.com open the market
PCF Capital Group's MinesOnline.com has gained a North American foothold as TMX Group, through its subsidiary TSX Inc., acquires a 50 per cent equity stake in the Australian-based online mining asset sales platform.
In the face of increasing globalization and growth in the mining sector, the TMX is strategically streamlining new listings by leveraging its international networks. The partnership is expected to boost and facilitate listings of the Exchange's capital pool companies by combining MinesOnline.com's global mining distribution network with the TSX's contacts and issuer base, says Liam Twigger, Managing Director of PCF Capital Group and MinesOnline.com.
Launched nearly two years ago, MinesOnline.com has grown from a dozen listings and a couple hundred subscribers into a global mining project portal with over 4,000 subscribers, netting over 15,000 visitors a month, according to Twigger. The online marketing portal has quickly become the number one mining project divestment website in Australia by connecting sellers of mining and exploration assets with buyers worldwide.
Having also established itself as the leading marketer of mining projects in the Southern Hemisphere, the company is venturing into the Northern Hemisphere on two fronts. First, MinesOnline.com aims to establish a larger distribution and client base for its project listings. Secondly, the company plans to act as a conduit for resource sector investment at the country level.
The deal with the TMX has cemented MinesOnline.com's presence by granting it access to its relationships with over 1,600 listed issuers and extensive government contacts. For the TMX, the online portal will provide a global conduit of mining projects delivered to the doorsteps of capital pool companies and listed mining firms. “It's a very smart move for the TSX and will deliver more business [through increased listings],” explains Twigger.
Greater distribution is a win-win situation for both sides of the deal as larger and more diverse distribution lists yield quicker expressions of interest and more accurate market prices for listed projects. Yet, diversity and spread also uncover unexpected pairings. “What we've learned over the years is that a lot of the buyers aren't who you think they might be,” Twigger explains. “Selling a gold mine in the traditional sense would logically lead to targeting gold companies”, he says, “but buyers have surfaced as nickel or iron ore companies and even Chinese property developers”.
At the same time, the mining real estate market is undergoing a transformation, playing technological catch-up with the residential and commercial real estate markets. Interested buyers are becoming increasingly able to browse mining projects as they would condominiums and office space. Meanwhile, brokers and agents in this specialized market have the opportunity to more easily market properties to a wider audience. “It's the spread and distribution that we can deliver,” he explains. “No one else in the market has that capability.”
So far, there are a handful of online platforms listing mining projects but MinesOnline.com is the only dedicated portal and intends to dominate this space, says Twigger. The Australian managing director does not believe that MinesOnline.com will replace traditional brokers but will be a complimentary part of the acquisition and sales process. “We intend to be at the front of the line for people looking to sell mines. We want MinesOnline to be the first thing they think about.”
Twigger's plans go beyond the project level with mining companies. He envisions MinesOnline.com as a potential conduit to capital from the world's mining centres to regions seeking foreign direct investment in their resource sectors. The company is currently in talks with African, Latin American and Scandinavian governments to provide country-specific portals for projects. MinesOnline.com has already structured a deal with the government of a Scandinavian country to provide a webpage for its projects and information on its mining environment. “We can deliver opportunities for South America, Africa or Scandinavia and we can deliver it through the mailbox”, he says.
As MinesOnline.com positions itself for aggressive expansion, an experienced board of directors has been formed with Twigger and John Correia representing PCF Capital and John McCoach and Loui Anastasopoulos representing the TMX. Heading up the Perth-based head office is the newly appointed Sales and Operations Manager, Warren Duff. Finally, a sales executive will be stationed in Toronto to facilitate growth in the Northern Hemisphere.
It is too early to tell if MinesOnline.com will enjoy the same success north of the equator as it has in Australia and the Southern Hemisphere. However, with a closure rate of over 40 per cent for projects listed on its website to date and extensive networks gained through its partnership with the TMX, MinesOnline.com is poised to make substantial inroads in mining's internet revolution.
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