Interest from South American citizens in mining investment is on the rise, according to Peruvian Explorers Association (AEPE) director Andre Gauthier.
 
He said the Bolsa de Valores (BVL) Jr. Venture Exchange - known as BVL Segmento de Capital de Riesgo in Spanish - had just five companies when it began in 2005, but the number has since grown to 19.
 
"It's still very immature compared to Australia, Canada or London, but that's how things start, and it's the only one in South America that is decent," said the geologist and businessman, whose efforts were instrumental in establishing the exchange.
 
"The population is more than 90 million if you take the three countries of Chile, Peru and Colombia, and they have a young workforce.
 
"These people know and like mining, and there are plenty - maybe two or three million people - who are willing to risk $US25,000 on exploration."
 
Gauthier said the venture exchange was very accessible for international investors, with a capital gains tax of just five per cent and broker fees that were cheaper than in his native Canada.
 
He said the idea was for BVL Jr. to attract listings from other countries in the region
 
"I am still involved in the junior market, being director of three companies (Rio Cristal, Vena Resources, Lara Exploration), but more importantly, trying to help the stock exchange get their act together and grow, including Chile and Colombia, and eventually, Mexico.
 
"Reaching 40 companies is not wishful thinking. This is of course a little visionary and to get there we certainly would have to have a few adjustments to the stock exchange and the rules to make it easier for people to invest.
 
"We would also need to change the mentality, either in the permitting or the jurisdictional stability right now in some cases."
 
However, he labelled the necessary changes as small adjustments, highlighting the stock exchange management realised their importance.
 
"I think soon it will be Australians and Canadians coming here. You'll see brokers will come here to get the money."
 
Gauthier has benefitted significantly from BVL Jr, having taken ownership of explorer Inca Pacific in late 2009 and selling his stake in 2011 with a mark-up of about 50c per share.
 
"The other group that bought it, Votorantim Metais from Brazil, is very happy and they're building the mine on that site."
 
He said the market capitalisation of the venture exchange ranged from $5-10 billion, while the 39 mining companies on the regular BVL were worth a combined $70 billion in March.
 
Of the exploration juniors that have become producers, Gauthier highlighted Rio Alto Mining, Trevali Mining, Amerigold Resources and Fortuna Silver Mines as standouts.
 
"All of them did not have a clear view that they would become producers at the beginning, but they used the stock exchange as a platform to raise money and become producers.
 
"It [BVL Jr.] is diversified. You've to people more involved in grass roots to the people involved more in advanced stage. You've got everything."
 
While a great deal of discussion over Peruvian mining concerns social unrest issues and dealing with communities, Gauthier emphasised that for juniors the big issue was permits.
 
"Permitting is a major problem here and it's due to confusion between the government, the communities and the various government institutions.
 
"It's complicated for a major not to get a permit without any help, but for a junior it's critical because if you don't have your permit, what do you do with your people?
 
"If you raise your money to drill, you cannot spend your money on community and social issues, or just paying the bills of keeping your head office running while you're waiting."
 
 
 
*Matthew Ogg is a Santiago-based freelance journalist.