The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V) chose Mendoza to host their first business round in Latin America. The balance of the event and medium-term objectives.
By Panorama Minero
Mendoza province hosted an event organized by the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSX-V), aimed at bringing together companies that are ready to list on the Toronto Stock Exchange with project owners from Argentina and Chile’s exploration sector.
Members of the CPC program (Capital Pool Companies) from Canada attended and participated in a roadshow with representatives from projects on this side of the continent. The CPC is an exclusive tool offered by TSX-V to facilitate the IPO of early-stage private companies, fostering connections between experienced investors and entrepreneurs with growing projects.
Guillaume Légaré, Director of Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V) for South America, was interviewed by PANORAMA MINERO and provided an overview of this first roadshow, highlighting that, at present, Argentina is the most important market for the Canadian exchange, especially in terms of working with junior companies.
Is Mendoza a good location for the Toronto Stock Exchange, considering that it is mainly focused on exploration?
Yes, we have indeed perceived Argentina as one of the main markets in Latin America for the Toronto Stock Exchange. We have 757 properties in Argentina listed on the TSX and TSX Venture. So, from this point on, it is a very positive sign in terms of provincial policy. We have noticed Mendoza's interest in promoting not only Mendoza as a province rich in minerals but also as a financial hub. As an exchange, we want to work with the local ecosystem because it is important to connect capital markets, and we also want to help because the financial strength of the Toronto Stock Exchange in Canada can significantly assist in the growth of the local ecosystem in Mendoza and throughout Argentina. Therefore, the province of Mendoza has growth potential, and we must help better promote these opportunities. This is the main objective of our visit with the CPCs: to connect projects with Canadian capital.
Which projects did you engage with during this visit?
There are several projects. We selected 27 projects from Brazil, Chile, and Argentina; 7 from Chile, 7 from Argentina, with a primary focus on critical minerals and gold. So, there are many rare earth projects, copper, lithium, and I think those are the main ones. There is a lot of interest from investors in the Toronto Stock Exchange in everything related to energy transition.
What level of technical information do projects need to have in order to approach the Toronto Stock Exchange?
They must have a report under the 43-101 standards, which is a very important document for listing on the TSX Venture Exchange. However, there are also some projects that are in the process of producing this report, and some CPC investors (Capital Pool Companies) can help with the production of this report, which is crucial for getting listed on the TSX Venture Exchange.
So, there are projects at different development stages, but the most important thing is to have a strong management team for the project’s growth because the CPCs are investors, but they will not work on the operational part of the project. They will help with the connections to investors and with how to operate on the Toronto Stock Exchange, as well as maintaining a position on the company's Board once it is listed, but there is a very important operational work with the local management team in Argentina and Chile.
So the CPCs that came are ready to list with an Argentine project on the TSX?
Yes, we believe that in the next few months we will see some more significant activity after this visit, because there are actually projects that are ready for the stock exchange, ready for investors, and globally, the world is talking a lot about energy expansion and Argentina's national policy, which is favorable to global investors. Argentina's position in the world right now is very positive. And the Toronto Stock Exchange has a presence in South America: I am responsible for activities in the region, and Argentina is currently our most important market.
How do you convince investors to invest in exploration-stage projects?
The Toronto Stock Exchange, with its TSX Venture Exchange, has been active in the mining sector for decades, so there is interest, there is capacity within the exchange, with our geologists and with the state rules on the TSX Venture Exchange, through the 43-101 report, there is a level of trust regarding the quality of projects. Additionally, in Canada, there is a retail investor market—ordinary Canadians who are interested in this sector as well. This is something that Argentina could develop in the future, not only by having a strong base through small and medium enterprises (SMEs) that work under very strong regulations but also a base of retail investors in the local market who can help grow projects in this exploration phase. That is why we want to work with SMEs to help develop a strong ecosystem in the coming years.
Transferring the model applied in Canada to Argentina and having the same type of investor finance exploration.
Right now, Canada, through TSX Venture, is the leading exchange in the world for junior projects, and we have 1,200 listed companies on the Toronto Stock Exchange solely in the mining sector. So, we are the number one exchange in the world at this level, and we want to work with other markets to really connect capital markets because it’s not only about accessing Canadian growth capital, but in the future, I think it is important to have the population of Argentina and other countries participate in this energy transition through an exchange, an ecosystem, a strong national capital market.
So the technical filter is the 43-101 instrument, but there is also support for those who have the potential to meet this requirement.
There is support from the Canadian ecosystem. We have a very strong mining ecosystem, but within the Toronto Stock Exchange, we also have geologists who support this process. For example, when there is a 43-101 report, it is possible to receive an initial reaction from the exchange to say whether the project is on track or if it needs more work before it is ready for the Toronto Stock Exchange. So, it is an educational process, and also a process of positioning for investors.
