The scope of the proposed mining project entails the purchasing of plant, machinery and equipment to conduct diamond mining.
The project also entails relocating the Diamond Core plant, machinery and equipment to Jacobsdal, Free State Province, which is 60 km outside Kimberley.
The machinery will be bought from BRC Diamond Core Ltd which closed down in 2009 due to recessionary conditions. We intend to commence with kimberlite mining operations.
The cash payback will be effected from the third year and it will take approximately 20 years to pay back the amount invested. The investor will be entitled to 60% shareholding with $12 750 000 of the total investment making up the above percentage.
This is good value for money in the sense that since the recessionary period of 2009, the price of diamond has not only recovered tremendously but it has rocketed through the ceiling. Due dilligence has been conducted on the mine and the financial projections reflect a very positive outlook.
The project is ready for comencements of mining operation and is only waiting for the investor to come on board.
South Africa accounts for 45% of global diamond trade and with a lot of diamond mines having closed down during the recession period, the demand for diamond currently exceeds supply.
The financials reflects the output of 17 carats in every 100 tons, therefore yielding an annual turnover of $10 000 000. The operating costs (expenses) will amount to $4 480 500. The gross profit before tax will be at $5 519 500. All this figures are based on conservative estimate of diamond being $230/ounce.
To purchase the shareholding as outlined above, and to finance the start up for purhasing of equipment and plant, as well as for operating expenses.