Offshore Mining Exploration Company Looking for Equity Investment

Opportunity Snapshot

Investment Opportunity

Our company has a pending Offshore mineral exploration licence covering 200 000km2 of the African coast, close to Ports.

We are looking for an equity partner to fund exploration to Indicated/ Measured JORC resource. The idea is to verify historical geological data with latest exploration technologies and list resource on the International Stock Market then mine the world class resource.

Targeted minerals:
Industrial Minerals: Glauconitic sand, Potash, Phosphate
Rare Earth minerals
Other minerals

The business idea is to sell Industrial minerals to fertilizer producers or produce own fertilizer and sell it.

According to Historical geological reports the licensed area contains:
- 5000-10 000 million ton Phosphate at 15% P2O5
- 500 million ton Glauconite sand at 8% Potash and 10% P2O5
- REE traces have been identified in samples and need to be specifically investigated.

According to Historical data the conservative Greenfield value of specific targeted areas within the application area is as follow:
Glauconite sand: $1.35 Billion
Phosphate rock: $5 Billion
(Greenfield value is calculated at 1% of the Spot Selling Price of the Mineral.)

The exploration licence is expected to be granted by December 2012. Its validity period is 5 years.
Exploration work can begin 6 months from securing equity partner.
We will apply for Mining licence if the project proves feasible. Then we will be able to start mining in 2020.
The life of a future mine is expected to be 50-100 years.

Competitive Advantage

The company was formed by strategic partners including a dedicated legal and environmental team to help it apply for one of the world’s largest offshore phosphate concessions. The licence was applied for just before companies started rushing to the ocean for mineral resources. The reason for the rush is that land resources are getting depleted and the technology in offshore mining is now at its prime making offshore mining even cheaper in some cases than conventional mining.

This project is a world class mining project that could supply the African continent with phosphate for fertilizer for the next 100 years, thus directly impacting world food shortages and high food prices in a positive way. You could say a find of a lifetime.

Our legal team is confident that the right will be awarded seeing that we have complied with ALL relevant regulations. Economically high food prices and world food shortages are high on the agenda of most government bodies. Therefore, this project will be welcomed. All environmental issues have been addressed through Environmental Impact Studies compiled by a highly qualified team of experts while working closely with public environmental bodies throughout the application process.

Rationale for the deal

Phosphate reserves are getting depleted fast and the increasing growth in human population is putting stress on food production and food prices. Phosphate price peeked during 2008. When all world commodity prices were falling, the phosphate price increased by 600%. Studies show that this was an early sign of what is to come with phosphate being compared to the oil boom during the 1970's. Phosphate reaching its peak when 50% of all known phosphate reserves have been mined somewhere around 2034 which will make phosphate the power mineral of the future. One of the worlds largest Mining Companies recently tried to by Canadian listed potash (used for fertilizer) company for $40 billion for the same reasons stated above, but did not succeed in doing so, the Canadian government intervened.

Even though Offshore Phosphate exploration/mining is still "new" during the last two years NZ and Namibian companies have done extensive exploration work of their own and is already planning on starting offshore phosphate mining during 2013, prooving that the technology exists. Other companies are catching on to the same ideas.

Use of financing

Funding is needed for new exploration on the ocean floor to verify old historical geological data.

The goal is to reach a JORC Measured resource on specific targeted areas within the application area and compile a feasibility study.

When the project proves feasible it will at this stage be bankable with financial institutions willing to finance the mine.

Opportunity for the investor

Equity Investment of up to 50% share in project to finance project to Measured JORC resource and bankable feasibility study.

IRR >35% according to a rough estimate when compared to similar projects that have gone through the exploration and feasibly stages on offshore phosphate mining.

Investment installment schedule to be provided to serious investors

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