The main way a junior raises money: shares sold directly to selected investors, usually at a discount and often with a warrant attached.
A capital raising method where securities are sold directly to a small number of investors rather than through a public offering. Junior mining companies frequently use private placements to fund exploration and development activities.
Explorers have no revenue, so placements are the entire funding mechanism. Who participates tells you a great deal — an insider-heavy raise reads differently from one led by an institution, and a raise that closes below its announced size reads differently again.
Watch the discount to market, the warrant terms, and whether the deal was upsized or cut. Canadian placements carry a four-month hold period, after which that stock becomes free-trading — a date worth marking.
Assuming a completed raise is unambiguously good news. It is dilution, and if it is done at a deep discount with a full warrant, existing holders are paying for it.