April 28th, 2017
Exploration company jumps on crowdfunding bandwagon
Though still gaining traction in Western Canada, crowdfunding is now being tapped by all types of industries as a leg up for accelerated growth.
B.C.-based junior mining company Kal Minerals Corp. has turned to Vested Technology Corp.’s online crowdfunding platform to build out its portfolio and expand the company.
“Kal Minerals is the first exploration company in Canada that is using the crowdfunding exemption offered by the British Columbia Securities Commission,” said David Patterson, chief operating officer at Vested.
Vested is a Vancouver-based startup crowdfunding platform that is not registered under Canadian securities legislation.
“The portal,” Patterson said, “allows a passageway for private companies to meet with private investors to fund small amounts of money through many investors, up to $250,000 twice a year.”
Equity crowdfunding has been legal in B.C. since May 2015, but he said this is the first time the option has been used this way in the province.
“This is definitely a milestone for junior exploration in B.C., but also for people that want to see how crowdfunding works at the grassroots level.”
“Ray played football for SFU, so I’ve known him from a few different walks of life,” Patterson said. “I also played football at the school.” Wladichuk, who played in the Canadian Football League for two years before starting Kal Minerals, studied engineering at SFU with a focus on alternative energy. He obtained his degree in earth sciences. His company is focused on aluminum alloys and other related metals and minerals. “We are trying to build a portfolio of good projects,“ Wladichuk said. That portfolio begins with the option of earning 100% interest in the Jack White property in B.C.’s New Westminster mining division, between Merritt and Hope.
“This B.C. property has great copper numbers and is in a regional scandium-high area, which is the best aluminum-strengthening alloy,” said Wladichuk. “We’ve already raised $70,000 for exploration, which is Step 1 for building this company up.”
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.