---- Gary Norris, Vice President, Seidler Oil & Gas Resources, LLC.
Amidst the current downturn of global economy, especially in resources and commodities market, raising capital has been a struggle junior exploration and development companies alike, urging them to look outside and get awareness in Asia, especially China for future financing.
Leading by its new central government officials, China has been far more supportive and encouraging to its non-governmental capital for outbound investment. China's private capital has taken its advantage of this buying capacity and opportunity to make sizeable investment in undervalued projects and companies.
In the past 2 years, China has ranked 3rd in Foreign Direct Investment (FDI), and 70% of the FDI goes into Energy & Metals projects. Non-governmental capital has been dominant in investing in overseas Energy & Metals projects and most of the M&A were done by private-held companies.
- Guizhou Guochuang Energy bought US-based Triple H Coal Mining for $550 Million;
- Sichuan Tianqi Lithium Co.,Ltd. took 65% of Australian-based Talison Lithium for $580 Million;
- China Molybdenum Co.,Ltd. took 80% of Australian-based Northparkes Mines for $820 Million.
NAI Interactive is now taking 13-15 quality junior exploration and development companies to China in May 2014 and meet with different groups of Chinese investors respectively in Beijing and Shanghai.
Beijing is China's Capital City and focused on Industrial investors, SOEs, North China Capital; Shanghai is China's financial Center, focused on funds, financial investors, private companies, South China Capital.