Opportunity Snapshot
- Country: USA
- Industry: Energy, Natural Resources, Mining
- Stage: Start-up
- Investment size: $25,000,000 / min. $25,000,000
- ROI: 16% in 3 years
- Type of investment: Equity
Investment Opportunity
The project seeks to raise $25,000,000 for the above operations. The potential goldmine site has an owner who is looking to sell a 49% stake in the business.
The Business scope of my project is to extract and smelt out gold deposits from at least 2 leased goldmine sites to sell to the open market.
Product/Services: Gold bullion bars/ Gold mining operations
Target: Open market retailers/corporations in need of gold bars.
Revenue Generation model: Selling to Gold wholesalers and Property Management firms that would seek and lease lands to our organisation for the purpose of our securing multiple gold business projects.
Project justification: This is a potential gold business where the placer claims linked to it would fetch billions of dollars for a life time
Progress on project: An initial contact with the Gold owner has already been established.
Project timeline and key milestone: Project Operational Timeline would commence within 30 days after securing the required funds.
Key Milestones: Key Milestones would be determined on the first 3-yearly returns which will total $12.42M (Year 1), $19.3M (Year 2), $44.9M (Year 3)respectively.
Funding needs: Capital of $25,000,000 is required for the 2 gold mine projects
Offering to the investor:
1) ROI (as stated above)
2) A seat on the board of directors and monthly dividends once operations commence.
3) A 40% stake into the business or 100% stake in the business (without putting my capital forward. In this case, since the owner is offering a 49% stake of his business to begin operation, the investor would get the remaining as long as I am guaranteed a form of royalty payments on a monthly basis which would exponentially increase year after year.
4) An exit strategy if things are not forthcoming after one year, would be to sell the existing business to a larger corporation at a very high premium which, in today's market, would be 10-15 times more than what it's worth.
Competitive Advantage
As detailed in my business plan (local gold mining sites within the Kern County)
Rationale for the deal
Adopting a rigorous method of establishing new relationships with all kinds of corporations, with particular emphasis on those with real estate and property management firms which specializes in land leasing services of potential lands that have gold and silver deposits. Adopting and achieving such process(es) would certainly be an advantage in filling the holes of future poor and unexpected low-key performances of gold bar sales.
Use of financing
Breakdown of Expenditures of the Required Funds:
1) Initial Lease Payments and Deposits: $200,850.05
2) Working Capital:$1,935,601.10
3) FF&E: $200,850.05
4) Leasehold Improvements: $100,818.78
5) Security Deposits:$20,704.70
6) Opening Supplies:$217,409.40
7) Company Vehicles and Vehicle Lease Deposits: $434,818.80
8) Marketing Budgets: $217,409.40
9) Miscellaneous and Unforeseen Costs: $163,057.37
What is your reason to finance?
I need to have the funds to begin the gold excavation project immediately to achieve my goals as well as the investors' goals.
How many rounds of financing do you envisage?
2-3 rounds
Opportunity for the investor
49% stake interest in the business projects, particularly the gold business operations in the United States.
Dividends would be determined by the total net sales on a monthly or yearly basis, particularly yearly.
I am looking for either a hands-on or silent investor.
My desired installment schedule would be of 2-3 rounds and paid as a lump sum in a space of between 2-3 months after the first funds has been secured and once operation begins on the project.
Looking for similar investment opportunities