Katherine is a mineral geologist keen to capitalise on Australia’s mineral boom. She decides to start a mining venture. Her main asset is a lease agreement which provides her with exploration rights over 2,000 square kilometres in the Pilbara region of Western Australia. She is unsure what type of business structure to create. Her financial adviser has told her that she will need to go “public” to compete with the bigger mining operations. Katherine is also unsure how much capital is required for her start-up but knows that mining exploration is expensive, with numerous ongoing costs and no guarantee of success. Advise Katherine whether a public entity is the most appropriate for her mining structure.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Katherine is a mineral geologist keen to capitalise on Australia’s mineral boom. She decides to start a mining venture. Her main asset is a lease agreement which provides her with exploration rights over 2,000 square kilometres in the Pilbara region of Western Australia. She is unsure what type of business structure to create. Her financial adviser has told her that she will need to go “public” to compete with the bigger mining operations. Katherine is also unsure how much capital is required for her start-up but knows that mining exploration is expensive, with numerous ongoing costs and no guarantee of success. Advise Katherine whether a public entity is the most appropriate for her mining structure.

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