Mining Syndicate Raising Funds for a Small Scale Gold Mine Project

A proposed small scale gold mine hereby is seeking interested business investor(s) or partners on a 50-50 profit sharing basis on a min. of 22 ounces/month.

I, a member of the mining syndicate, hereby would like to submit my request for financial assistance of USD48,300.00 (Forty Eight Thousand, Three Hundred Dollars) for the purchase of mining equipment and mine start-up capital requirements.

Breakdown

Item Description/Issue Cost (USD) $
1 Ball mill – 1tonne/hr at ATTA Engineering – Harare: 10,000.00
2 Generator – ATTA Engineering: 10,000.00
3 Compressor, Ingersoll Rand S.A. (ZAR73,000.00): 7,300.00
4 Jackhammer and Rock breaker – Anton’s Mining Harare: 1,800.00
5 Hoist – ATTA: 2,000.00
6 James Table – ATTA: 2,000.00
7 Civil works: 5,200.00
8 Slurry Pumps – R.S.A.: 2,000.00
9 Transportation of equipment to site : 5,000.00
10 Mobilisation and start up capital: 3,000.00
TOTAL: 48,300.00

Returns – Monthly Production Budget

Item / Parameter / Unit of Measure / Value
1 Ore milled in Tonne: 520
2 Head Grade in Grams/Tonne: 2
3 Recovery in %: 70
4 Gold produced in Gram: 728
5 Gold produced in Ounce: 22.75
6 Gold Market Price in USD ($): 1,200.00
7 Revenue generated in USD ($): 27,300.00

Monthly Expenditure

Item / Description / Cost (USD) $
1 Salaries X 12 people operating 2 shifts/day (6 each): 4,800.00
2 Fuels and explosives 40lt/d and 1 box/week: 2,416.00
3 Equipment Maintenance: 3,000.00
4 Licences – Mining, Explosives, Ore removal: 250.00
5 Taxes, presumptive at 35% of revenue generated: 9,555.00
TOTAL: 20,021.00

Operating Profit

Revenue Generated less Total Expenditure

USD 27,300.00 – USD 20,021.00 = USD 7,279.00

Loan/Fund Repayment

Upon receipt of funds, it will take about eight to ten (8-10) weeks to set-up the equipment, thereafter commencement of operations. Therefore repayment will follow the month after operations have commenced. There are two scenarios hereby proposed for the repayment of the above requested funding.

Option 1

Payment (USD) $ / Duration (Months) / Total (USD) $
10,000.00 for 8months: $80,000.00

NB. This option requires a six months tax exemption period

Option 2

Payment (USD) $ / Duration (Months) / Total (USD) $
5,000.00 for 24 months: 120,000.00

NB. This option will be repaying from the operating profit generated

Benefits

The project has an initial potential of directly employing about twelve people and numerous other service providing institutions.

Furthermore, community development initiatives will be brought on board once repayment has been done and recapitalization and project expansion have been carried.

• Production assumption is based on minimum anticipated grades, with some instances were high grade pockets may be intercepted with grades running as high as 10 grams per ton ore milled.
• Lower wage bills
• Continual improvement initiatives will be implemented to increase process efficiencies

Further exploration will be carried out once plant is running in view of exploiting other associated PGMs within the mining area.

It is further anticipated that deeper mining will result in access to base minerals such as nickel and copper.

More money will be generated through enhancing process recoveries.

I have 16 years experience in the mineral processing industry in various positions, ranging from metallurgist, process engineer to acting plant manager.

Funding is mainly for purchase of above mentioned mining equipment and setting up of the production unit.

Overall loan amount expected is $56,000.00.
Expected payback period is within 8 months of commencement of production which is anticipated to start within 8 – 10 weeks of receiving funding and or the above mentioned mining equipment.
A hands-on investor will be an ideal candidate for this project, although silent partner(s) are welcome as well.
A once-off provision of finance or mining equipment is sought after to enable a faster turnaround of the project.