Eligibility Criteria for Funding:

• Be a Junior Miner
• Be a South African registered juristic person
• Be domiciled in South Africa
• Have a valid prospecting licence
• The applicant must be at least 51% black-owned

The Fund will have three Funding Calls.

In the event that the Fund meets its goals in Phase One, the Parties will carry over the Fund’s objectives into Phase Two by establishing a new, independent fund in which they will invest alongside any additional third-party investors.

Will there be webinars to explain the JMEF and answer questions relating to it?

Yes, on 20 and 27 June, both at 12:00. The webinars will be on MS Teams. Please see above for webinar links, as well as links to the recordings of the webinar in case you missed it.

What is the definition of “junior miner”?

For the purposes of the Junior Mining Exploration Fund a Junior Miner is:

• A non-listed private company duly incorporated in terms of the Companies Act 71 of 2008
• The entity must possess a valid ‘Prospecting Right,’ as defined by the Mineral and Petroleum Resources Development Act of 2002. This right must have an expiration date that is at least 12 months from the closing date of the application.
• The entity must be operating in greenfield or brownfield exploration activities within South Africa
• The entity must have a combined direct and/or indirect ownership (in the form of fully voting and participating shares) by “black people” (as this term is defined in the Broad-Based Black Economic Empowerment Act 53 of 2003) of at least 51%
• The entity or any controlling shareholder (as defined in the company’s act) should not have revenue generated from other mining rights

Where can application be submitted?

We prefer applications to be emailed to jmef@idc.co.za. Those applicants who don’t have access to email are welcome to go to IDC or DMRE regional offices where they will be assisted to email their applications.

Hard copy applications will only be accepted if submitted at the IDC Head Office Walk-in Centre (Industrial Development Corporation, 19 Fredman Drive, Sandown, Sandton).

Do you also fund exploration for coal/diamonds/any other minerals?

The current call for applications is only aimed at exploration for the following commodities:

• • Copper
  • Nickel
  • Graphite
  • Lithium
  • Rare-Earth Elements

Will the JMEF also fund exploration in Lesotho/Botswana/other countries?

The JMEF is only for exploration within the boundaries of the Republic of South Africa.

Will the JMEF also cover mining (actual mineral extraction)?

No, the JMEF will only fund exploration activities.

We don’t have a valid prospecting right – can the JMEF assist us in obtaining one?

No, the JMEF is aimed at current holders of valid prospecting rights.

Will the JMEF fund the acquisition of shares in an existing mining company/buying an existing mining entity/purchasing a mine?

No, the JMEF will only fund direct exploration activities.

Will the JMEF fund the manufacture of hard rock drill bits/any other activity that supports mining and exploration activities?

No, the JMEF will only fund direct exploration activities.

Do the prospecting rights apply solely to a South African registered company? If we were to obtain prospecting rights from a company based in another country, would it necessitate a South African entity holding a minimum of 51% BEE ownership?

Correct, it has to be a South African registered company that is more than 50% BEE-owned

What is the total JMEF fund amount?

R400 million

What is the total amount of the first funding call?

R160 million

How is the investment budget distributed?

Grant amounts will be between R5m and R45m per beneficiary, paid from the R400m total fund amount.

Concerning the lead applicant, is it a requirement for them to possess the prospecting rights, or would it be acceptable for a joint venture to be established utilizing another entity’s license?

The lead applicant must own the prospecting rights.

On what basis will the grant be converted to equity?

This will be negotiated on a case-by-case basis, based on a fair valuation of the deposit.

Are financial statements/management accounts required for a new/start-up venture?

No, financial statements/management accounts are only required for existing companies.

For enquiries, email: jmef@idc.co.za