The financing of smaller resource projects has proven to be a difficult problem for promoters and financiers alike as very often such projects have not met the requirements of available financing methods and promoters have equally found it difficult to establish credibility, management and technical ability with potential financing sources. Solutions to the dilemma in which many of these projects find themselves are not readily apparent but will need to be found if the full potential of Australia's resources is to be realised. INTRODUCTION The growth of so called project financing in its present form is normally considered to be a phenomenon of very recent times, however, paradoxically there are references to what could be called financing in the old testament. To confuse the issue further financing small resource projects may not, and very often are not undertaken on a project financing basis. It is therefore quite apparent that one should be completely clear on: