Gold Mine

Background

The company holds the mining rights under a 20-year license to extract gold and other minerals from the site of approximately 150 hectares.
A further geological report has been commissioned, suitable for the stock exchange, and will be complete within 40 days.
The mine is easily accessible by road and has water on site.
The company holding the rights is looking to sell 65% of the shares.

Letter of clean title and good standing.
Geologists estimate there are between 300 and 800 tons of gold recoverable from the site, using a value for gold of US$ 800 per OZ net, this equates to between US$ 8.4 Billion (and 800 tons = US$ 22 Billion).
The company market value today would be taken as between 4-10% whilst the gold is in the ground. 4% of US$ 8.4 Billion = US$336Million.
The production is envisaged to begin in 4 months time, once this starts the value of the mining rights are uplifted which will be reflected in the share price.
The total gold production is already presold.

This is a working mining business, with good road access and therefore simple extraction and distribution infrastructure.

The mine has a estimated reserve of 200 million tons of Manganese. Manganese is used in many fields but generally it gives all steel its rigidity.
The company has existing orders for 1,000 tons per month, which after a period of months will increase, to 5,000 tons per month. This will produce initial profits in excess of US$500,000 per month with very little investment as the mining process is very basic and does not require high capital expenditure on machinery.
The first stage after the acquisition will be to organise a full geological report in order to substantiate a minimum of 200 million tons of high concentration Manganese.

This report will be carried out by SRK and be prepared to the specification required for the London Stock Exchange. It will take 2 months until the completion of the report; the report is fully expected to value the asset at in excess of US$500 million