Equity Investment Needed for Alluvial Gold Deposit Mining

Opportunity Snapshot

Alluvial Gold Production - Investment Opportunities in Ghana Gold in its raw state always has a market so that the revenue generation magnitude depends on the gold production capacity. The more gold you produce, the more revenue you generate. Image Courtesy: Mario, 2006, Flickr CC.

Investment Opportunity

Scope: Gold Mining. Funding use: Operational costs for 3 months and equipment purchase. Offer to investors: 65% equity and/or right to purchase gold at negotiated rates.

Products/Services:

Mining of alluvial gold deposit has a lot of positives with the low operating cost being paramount. Gold is a raw material for a lot of industries and it is also kept in its raw form as a form of investment.

The Market:

The market for our product will be gold refineries.
Gold in its raw state always has a market so that the revenue generation model is based on producing the gold. The more gold you produce, the more revenue you generate.

Goals and Expected Outcomes:

The goals of this company are as follows:
1. Get access to more alluvial gold land areas to have a minimum of 5years life of mine.
2. Attract more investors within 5years to expand into hard rock mining and become a junior miner in the next 10years.
3. Prepare and implement a mining plan that will be:
a. Cost efficient
b. Safe
c. Environmentally friendly
d. Community conscious
This is to prevent the "wastage of alluvial deposit".
4. To produce 4400 ounces in the first year of production and expand steadily and continuously to 7000ounces in the fifth year.
5. Develop a strategy aimed at "Scavenging" already mined areas (hard rock or alluvial) and processing material still having profitable grades. This will serve as a way of generating extra revenue and also providing an environmental service by rehabilitating such areas.

Progress on the Project:

The project has been on the drawing board for some years now and we have got to the stage where we have located concessions with profitable grades.

Initially it was thought that we could raise funds to employ methods which mostly would recover about 60% of recoverable gold from the ore.
It was later decided that a much more efficient system should be employed and that will require more money and also prevents "wastage of the deposit".

Project Timeline and Key Milestones:

Legal processing + negotiation of surface use - 1month
Geological Sampling - 1month
Plant design + Ordering - 1 month
Plant shipping + Concession development - 6 months
Mine Establishment - 1 month
Commissioning

Production:

Negotiations for surface use have already been done, an idea of the plant to use available and because the method of mining requires a more modular plant there will be no need for fixed construction.

Mining, rehabilitation and processing will be progressive and the plant will "follow" the ore.

In all it will take 10 months for production to start.

Rationale for the deal

Gold Mining is among the top investment opportunities in Ghana due to its high profitability.

Use of financing

Funds are needed to purchase the concession and the processing equipment and also for further geological sampling and initial 3 months of operations (1 month will be acceptable). After that the operation is expected to finance itself.

Opportunity for the investor

For the investor we suggest that, finance unless necessary will be in the form of "kind" i.e. plant purchase. The activities that may need cash may include concession purchase, geological sampling and initial operation. This is to reduce the investor's exposure to fraud and establish confidence.

If successful we are offering the investor the following:
1. 65% equity
2. Option to purchase all gold produced
3. 10% of initial capital investment paid back with 5% p.a.

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