The Worst Gold Investing Advice I've Read [View article]
That has to do with the funding risk. EU's banks are the major source of loans (+80%) for mining activity. With the debt crisis in Europe, funds are drying up and explorers might have to raise more equity to build their mine, which in turns further dilute current shareholders. Most institutions now it and are wait for the dilution to occur before putting capital at risk.
The Worst Gold Investing Advice I've Read [View article]