MELBOURNE–Shares in Australia’s smaller mining companies have been particularly hard-hit in recent weeks, a shift that could spur a round of deal-making while equity valuations are depressed.
“I’m not sure everyone has noticed just how badly hammered the junior sector has been,” said Jonathan Downes, managing director of Ironbark Zinc Ltd., a metals explorer in Greenland and Australia. “Everyone is a little shell-shocked.”
Junior miners are small companies developing, or seeking to develop, a resource deposit. Like start-ups in other industries, they often are in need of funding as they try to expand or build a mine, or are looking to be bought by a larger company.
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