Buying an existing claim
- Thread starter Cohen
- Start date
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I would say the banks and finance Industry would not look to favourable to Mining claims, under current lending rules it could be hard to get finance.
What prior mining experience do you have? Actual mining, not hobbyist prospecting or watching Gold TV shows?
What prior mining experience do you have? Actual mining, not hobbyist prospecting or watching Gold TV shows?
Welcome Cohen.
Cohen said:
Given that a claim is only a temporary licence to extract minerals from an area of land, you've got zero chance of getting a mortgage, because the claim+dwelling won't be acceptable to a bank or financier as security. Your only chance of finance would be a personal loan secured by other assets that you may own.
The main limiting factor to getting finance these days is serviceability: How much income you earn minus expenses.
If you are earning $50,000 take home per annum and spending $49,000 on living expenses you basically don't qualify for a loan.
Banks and finance companies shy away from new start business etc, a mining claim would be regarded as high risk, especially if it can't be proven
you have a viable deposit with past production and proof there is more resource left?
If you are earning $50,000 take home per annum and spending $49,000 on living expenses you basically don't qualify for a loan.
Banks and finance companies shy away from new start business etc, a mining claim would be regarded as high risk, especially if it can't be proven
you have a viable deposit with past production and proof there is more resource left?
