- Country: Zimbabwe
- Industry: Energy, Natural Resources, Mining
- Stage: Expansion/Growth
- Years in operations: 1, Employees: 50
- Investment size: $25,000 / min. $20,000
- ROI: 100% in 1 years
- Type of investment: Debt, Equity
We are mining in a very rich area of central Zimbabwe called Chakari. We have 4 mine shafts, deepest of which is 52m deep with minimum 15 grams per ton at the mill.
We are mining this area of Zimbabwe where the Germans mined so much and exposed very rich mines. Ours are 4 shafts from which we have had samples at the mill of 15 grams per ton minimum. We are looking for an investor who just needs to get gold with investment of a little cash. We are willing to take a little cash of 10000USD and the rest in equipment as follows: a compressor on wheels, preferably Ingasol Rand, Compair or Atlas Copco, 110 CFM to 150 CFM capable of running 2 jack hammers, 2 hoses 100 m long each, A 30 Kva 3 phase generator and 2 water pumps of 15HP and 7.5HP. We also need an electric hoist capable of 1/2 ton to 1 ton per haul.
We are looking to mine 25 tons or more of ore a day with 50 men working all the shafts. Working in each shaft will be 6 men per shift of 24 hrs each so that when they come out, they will have produced an output of between 6 and 8 tons. We are very confident that we will reach this target, judging by what we do without most equipment and with us having to hire a compressor, generator and pump and no electric hoist. At the moment, we are fighting a losing battle as we have reached the water table on 2 shafts and hard schist of the other 2, with water also starting to present a problem. Despite all this we produce 3 tons every 24 hrs and have had to "lay off" some of our men as we can only work in 2 shafts. The deeper ones are at a point at the mill; we have milled 3 tons and got 60 grams of melted gold! Unfortunately, we cannot continue due to the water problem in these deep shafts. With the equipment we listed above, we will up our production to over 8 tons per shaft a day easy and will output a guaranteed 450 grams of gold daily from between 32 to 40 tons of ore.
The investor we need should be willing to invest as we have stated and more importantly, be willing to come to our mine or send a representative of theirs to see for themselves what we are doing and also give us advice if necessary, tell us to improve where needed and ensure that they will get their money and equipment’s worth. We have a great need of the equipment and if you have it lying around, you can make millions of dollars without breaking a single sweat. We will not take the equipment from you but only use it; it remains yours unless we together have an agreement on its transfer to us.
As soon as the investor has joined us we propose to mine for 48 hrs and then mill the ore to verify the samples and get the investor’s approval. We will then mine for 2 weeks, giving Mondays off to our workers , meaning we will work Tuesday to Sunday straight through and rest on Mondays . During these 12 days, we will produce +/_380 tons at 15 grams per ton minimum! We know it might sound like too much, but we want you to come and see for yourself. To make it even safer for your money, at first you can give us only the money needed to buy essentials and you will get to participate in the purchasing of food, explosives, torches, diesel and protective gear. These are the things we need the $10000USD for: to keep running for a month and then pay the workers an advance on their wages .The rest, i.e. $15000, we will break it down as follows, $5500 for a good used compressor, $1000 for 2 jack hammers, $1500 for two 100m hoses and clamps, $4000 for a generator and $3000 for the 1/2 ton electric hoist.
We will share the profits as follows: investor will get 25 % + initial investment and we will keep the remainder after wages and running cash.
The only competition we have is the speed at which we can bring out the ore from the ground. We are positioned near other small scale miners doing very good and with great samples but not producing anything near what we want to produce. We want to bring out hundreds of tons of ore and mill it to produce as much as 5 kg of gold every 2 weeks. We all know that there is no limit to the market for gold and the investor will get their share in gold straight from the mill and they can do whatever they desire with it. The investor will have the choice to signing a long deal with us, to negotiate a bigger percent of the profits as long as both sides are happy with the outcome. If we are to get a good investor and if we can mine all of our shafts at the same time, and are also lucky to get an investor who has the know-how to take the mine to greater heights we will be very happy. The area is known for producing kilos of gold per ton at deeps of 100m or more. At the moment we have tunnels in the deeper shafts and are busy with a couple of tunnels at 17m in the shallowest shaft. An investor coming in this year (2014) will be able to see some great samples and make all their money within the first 2 weeks guaranteed.
Rationale for the deal
At the moment, the mines are at most being scratched. We are asking for an investor who can bring in his money or a combination of equipment and money to make a lot of gold for himself and for us with no risk. We intend to be right at the top of the small scale miners’ ladder. We also intend to open other shafts nearby and also up the production to the same level as the first 4. Before the situation in Zimbabwe changed, we had a rich farmer and miner as our neighbour. He represented the best that can be as far as mining is concerned to a small scale miner like us. He mined hundreds of tons every month and got kilos of gold in the process. He once bragged to us about his worth, saying if he had to lay his money on the ground, one note after the other, from Kadoma to Cape Town which is about 3000km, he would walk on it to and fro without stepping on the same note twice, that's about 6000km of notes! We intend to copy his style and even improve it. Our ultimate aim is to mine as much as 50kg of the mineral in the remainder of 2014 and to even increase that to 150kg by next year (2015). Any investor out there, this is the right time to come in.
Use of financing
As we stated before, we want an investor with $25000USD cash or with equipment and $10000 cash for the purchase of food, explosives, diesel, protective gear and drill steels, etc. The equipment we intend to get is a compressor on wheels capable of running, two jack hammers, two 100m hoses, a 30 Kva generator, an electric winch capable of 1/2 ton or more and 2 water pumps . Once we have received this financing, we won’t need any more money from the investor, unless if we both see the need to bring in more capital or equipment by mutual agreement. We intend to put together a capital package to keep for the financing of operations at our mines and any expansion we may think of. We also want to take advantage of other small scale miners who don't have finance but have very good samples. We intend to finance their operations at a percentage of their output of gold in return for capital and the investor we are looking for can be a part of these deals if they so wish. We are talking samples of 15 grams per ton or more. Our aim is to get as much gold as we possibly can from the mines near us.
Opportunity for the investor
The investor we need will get their money back plus 100% in 2 months if they want to only give us the money and don’t want to mine with us and receive a share. Alternatively, we will offer the investor with $25000 their money back and a share of 25% of our production. The investor doesn’t need to give us all the $25000 but can give us the equipment stated above and a cash injection of $10000 to us as day to day cash for a month. If the investor is a hands on investor, we would be more than willing to work with them on the setup we have stated above as long as we mine and have kilos of gold at the end of the day.
Looking for similar investment opportunities