We need this to top up our financing for start-up expenses. We have 3 independent survey reports on the mine and the cash flow back-up details.
This work programme details proposed activities of our Mining company for the Fox Creek Gold Mine over a three Year 2 month period from 1 April 2013 to June 2016 within Mining Permit 50322 (known before as 41-058) along the Fox Creek, Upper Arahura Valley, West Coast of NZ. We are offering a 25% profit for an investment of US $1 million to be repaid in one year, or for an investment of $1 million or $2 million to be repaid in two years at 25% profit per year.
We are a leading supplier of Mining, Construction and Aviation Ground support equipment specialized in the tasks of providing new OEM equipment, used equipment, manufacturing solutions, freight logistics and atermarket support of these industries.
We are the authorized dealer for global mining manufacturers BELAZ and BEML, supplying excavators, bulldozers and mining trucks up to 400 tons.
Our group has a vast used equipment stock and supply base, with ofices in 7 countries we are positioned to provide your company with the support it needs in heavy equipment procurement and aftermarket services the world over.
The proposed Fox Creek Gold Mine operation has a confirmed resource of between 22,000-25,000 ounces, at todays wholesale value of NZD$2070 (based of global spot gold price of USD$1770 per ounce) equates to revenue of NZD$45.4 Million - NZD$51.7 Million with a further known gold
resource of 20,000-25000 ounces providing a total 6 year mine life, when the mine permit expires in August 2018 (can be extendable if required).
Drill results confirm the resource and the mine is starting the pit. Site is already cleared which we have done over the last month.
Financing could take the form of a bank guaranty with terms acceptable to you. This would enable us to get the financing from local banks. And we can offer 25-35% of company shares as collateral.
The Mining Permit (MP) was granted on 3'd May 1994 for a period of 20 years over a total of 123.50 hectares. In 2004 mining permit 50322 had been expanded to the 462 Hectares it is today, final mining permit awarded on 12h August 2012.
We are offering a safe high return. During 2013 global spot gold pricing is expected to reach USD$2000 per ounce (NZD$2350 wholesale), which will increase mining revenue to NZD$51.7 million — $58.7 million.
Funding is needed to start up the mine.
Total direct mining costs will be NZD$7.4m (excluding GST).
Total Overhead expenses will be NZD$1.2m (excluding GST)
25% return in one year or 25% per year for 2 years.
Cash flow projections in year one show an operating cash reserve of NZD$5.6m
Operating profit for Stage 1-2 covering the 3 year period will be NZD$33m
Expected interest costs of between NZD$800,000 will be incurred for the finance requirements. Equipment is forecasted to be repaid over the 2 year period
NETT Profit after Interest and Tax is expected to be NZD$23.1m or NZD$7.5m each year.