- Country: Zimbabwe
- Industry: Energy, Natural Resources, Mining
- Stage: Start-up
- Investment size: $500,000 / min. $300,000
- Type of investment: Debt
Our company is planning to capacitate small miners through leasing and renting critical mining equipment required to extract, process, value add their mineral produce.
To start this project the company requires a maximum investment of $500,000 to import the relevant equipment like mills, mobile crushers, and beneficiation plants.
The company aims to capacitate small miners through leasing and renting mining equipment to them.
The cash payback period is 3 years and ROI is 20% per annum.
Zimbabwe is endowed with vast mineral resources, these mineral resources and claims are lying idle because those holding the claims can't extract the reserves due to lack of capital and machinery.
The investor will be able to benefit from returns that are linked to the performance of minerals.
In today's market mineral resources are providing better returns (save havens) than traditional markets related to financial markets that are related to the global turmoil.
Initial stage; additional funding required is $500,000 in order to service medium and big mining companies that prefer outsourcing of equipment.
Competitors are failing to secure capital and are using obsolete and aging equipment. I am planning to use highly efficient machinery.
The advantage is sustainable since the company will be ploughing back into the business and acquiring machines that are dynamic to changing trends in mining processing and excavation. The majority of competitors are in the business to survive and as a result recapitalisation is not their goal.
Rationale for the deal
Opportunity is to benefit from returns associated with mining business, without owning a mine but servicing the needs of the miner.
Cash flows will come from the services rendered, for those without cash I will receive in form of the minerals extracted.
I have strong indications that other market players are making from a similar opportunity.
Use of financing
We need funds to buy mining equipment.
The desired investment schedule is 5 years.
Opportunity for the investor
I am looking for a combination of debt and equity.
For debt I am looking forward to $200,000 at an interest of 5% per annum.
For equity investment I am offering 49%, estimated dividends of $2 per share per annum.
In terms of investor – I am looking for silent investor.
• Payback period 3 years
• ROI is of 20% per annum
• IRR 10%
• Installment schedule of 5 years
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