We have secured 400,000 ha to grow 2 crops a year of Soybean and Canola with off-take agreements for the various stages and and major Capex funding via China and SA.
The project is a vertically integrated project for the development of 3 major regions for which we have secured 400,000 ha in Eastern Cape and Venda, South Africa as well as 2 million ha in Lubefu, DRC.
Year 1&2 are based on the international sales of Canola and Soybean commodities estimated at approximately 1.6 million tons.
Year 3 onward is based on the production of Diesel (500,000 tons) and 1.2 million tons of cake.
Phase 3: under consideration is the development of cattle and chicken intensive farming as labor is already paid for on the farms. (This is not included in the financials)
Unique to the project is:
Land is acquired at no cost of land only administration
Low labor cost is achieved as we are creating farming on traditional leader land and offering an offtake of $250 a ton
We are controlling the farms by providing equipment, training, seeds, fertilizers, herbicides, etc. as free issue to the emerging farmers.
In SA we receive a $90 m tax rebate and depreciation at 50:30:20 as well as training rebates worth $6m. In DRC we have no taxes for the first 5 years.
We generate all energy, steam and methanol we need from our waste streams saving 20% input costs and we are totally of grid. We will have 5 Mw spare capacity, which has not been calculated in as a revenue stream.
The major equipment provider is providing the debt equity across all 3 projects based on 7000 unit order totaling $700 m and if Lovol is appointed we will be their distributor in Southern Africa for farm and construction equipment.
Target start dates:
Aug 15: Training by 50 Argentinians per project
Nov 15: Planting of first crop
Aug 17: Start Building the Bio Diesel production unit
Aug 18: Commercial production of Bio-diesel
• Land location
• No costs of land due to available right of use agreements
• Highly skilled management team
• The competitive use of experts from Argentina full time for 3 years
• Low labor costs
• Off-take agreements for soybean and canola and derivative products
• The use of cold plasma technology covering all waste into power , steam and methanol
• Manufacture of diesel which 60% will be taken up by agricultural activities
• Regarding meat production in Phase 3: Нo additional labor cost for managing the supply of calves and day old chickens. In this phase we produce 77% of our own feed from barley and the use of the canola and soy cake production
• $2 m in Carbon Credit potential
• Import-Export Bank funding possible
• Government tax rebates and training grants
According to financials calculated at 2 tons per hectare in years 1 & 2 we will deliver 3 tons per ha in SA and 4.5 tons per ha in DRC.
The project is at a bankable stage. The director requires us to secure additional funding for the raising of the BG from Citibank Bank for the South African project portion in the amount of $30 at 0.05% initiation fee, and and to start the administrative functions on site for the application of 500 emerging farmers for the Land Bank.
The equity of $2.5M will be used to raise the ban guarantee (BG) in the form of an initiation fee of 0.05%. The BG is needed by Land Bank of South Africa to access the loans from their emerging farmer funds. The balance is an administrative cost to get the applications (+500) into the Land bank as well as conclude the deal with either Lovol (China) or John Deere. (USA) trips will be required to head office of these countries by Directors and our agricultural experts.
There are 3 main projects all with MoU signed for land usage.
We are offering 15% of each project for investment in the amount of $2,5 million.
If we have an investor who has an appetite for all projects and is willing to participate in the project with management and resource skills , will consider a higher % and intro into the holding company and the various additional projects.
Project list attached