Mining Moguls Add Star Power To Women In Mining Fundraiser

Philanthropist Frank Giustra, investment entrepreneur Eric Sprott and gold mining magnate Robert McEwen have agreed to meet with the winners of an unusual contest organized by Women in Mining (WIM) to support a $250,000 fundraiser for The Townships Project, a microlending initiative in South Africa.

The prizes for the “Meet the Mining Mogul” contest are opportunities for private consultations with the Canadian mining moguls in a Dragon’s Den meets The Apprentice format. The winners, who will have a chance to pick the brains of these industry leaders or pitch their own ideas, will be announced on March 3, during the International Women in Mining reception at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto.

The contest will also benefit hundreds of South African entrepreneurs, mostly women seeking small loans in the range of $50 to $100 to start or expand small businesses in several of the nation’s impoverished townships.

McEwen, CEO of US Gold (UXG-T, UXG-X) and the founder of Goldcorp, says he supports the project because he believes in the concept of instilling self-confidence so people will strive toward financial independence. “Microlending exists for that purpose,” he said in a release.

In December 2007, WIM launched its ambitious plan to raise $250,000 for The Townships Project by March 2009. In a statement, Member Lynda Bloom said the strong support for the successful 2007 campaign, which raised $232,000 for breast cancer research, “emboldened WIM to reach out internationally to those less fortunate.”

WIM recruited three of Canada’s best-known mining moguls to donate their time and talent to its newest fundraising campaign. It was an easy leap for Giustra, who with former president Bill Clinton launched the Clinton Giustra Sustainable Growth Initiative focused on fighting poverty in the developing world in partnership with the global mining community. McEwen is also well known for his philanthropy, particularly in the areas of public health. Along with Sprott, the founder of Sprott Securities, Giustra and McEwen will share their financial and entrepreneurial expertise with the lucky winners of the Meet the Mining Mogul Contest. (See www.women-in-mining.comfor contest details or visit the WIM booth at the PDAC convention or at the Mineral Exploration Roundup in Vancouver.)

Stephen Coates, CEO of Canadian coal miner Homeland Energy (HEG-V, HMDEF-O), helped kick-start the campaign with a donation of $50,000 to The Townships Project.

Martha Deacon, CEO of The Townships Project, was inspired to launch the initiative based on the success of microfinance institutions elsewhere in the world, notably the Grameen Bank, which pioneered the use of micro-lending 30 years ago in Bangladesh. In 2006, the Grameen Bank and Bangladeshi economist Muhammad Yunus won the Nobel Peace Prize for leveraging tiny loans into powerful instruments of social change.

While visiting Cape Town, Durban and Johannesburg, Deacon was struck by the lack of jobs and small businesses within the sprawling townships outside these urban centres. With a background in corporate finance and law, she also noticed that credit simply wasn’t available to the nearly 20 million South Africans struggling to survive on less than US$2 per day.

“Self-employment is the only option for these people, but without credit, their chances of escaping poverty are grim,” Deacon says. “I’m often asked, why South Africa? My reply is that it’s the financial engine of sub-Saharan Africa. Its political, social and financial stability is critical to the improvement of life on the continent.”

Deacon founded The Townships Project as a registered Canadian charity that helps fill the lending gap by offering repayable interest-bearing loans to South African entrepreneurs. The project teams up with several local funding entities that contribute an additional $2.50 in loan funding for every $1 directly donated.

Since May 1999, The Townships Project has helped more than 15,000 South Africans make the transition from poverty to self-reliance. To learn more about the project and its many success stories, visit www.thetownshipsproject.org.