are many ways to participate in mining as an investor...
The property can be purchased, leased, or optioned in whole or in
part. In this case, the investor becomes a mining company and has
total control of the project and business failure or success depends
upon the competency of the investor / miner and those around him.
Also, there are mining companies who seek joint venture partners of
up to 49 % ownership. In this case the original property or claim
owners have total control of the operation and the investor hopes the
management steers a profitable course for the company. The investor
is usually paid back quickly and continues to benefit from the profits
of the operation for the life of the project. Over
the long run, profits from good joint venture projects can be enormous
and dwarf the high returns that are
seen with mining loans.
Many mining companies need operating loans
for start up or expansion and these deals can be extremely attractive
to the investor. Mining companies know that they are literally sitting
on a gold mine but the initial cost of recovery is high . Mining companies
have a difficult if not impossible time finding funding through conventional
sources so they are willing to offer an unusually
high return on your investment!
percentage rate returns of 35% - 50% - 100% or even more are common.
companies offer to pay this back between 1 - 3 years.
We have mining companies
listed who contact us and are looking for operating loans. Many of these
are fully secured by real estate and other assets, some are not.
a loan to a mining company you can get a predictable return on investment
and avoid all the work and all of the headaches that accompany running
and owning any large business.
Investors should note that all of these companies will accept loans
or joint ventures for less than the amount of the total funding that
smaller amounts may be committed to each of these projects as well.
in mining, all deals are subject to negotiation. We put you in touch
with the owner or manager of a project. Then you can get the feel of
the deal, perform any due diligence required, and make the management
an offer. Asking for generous terms* will insure
that you get a great deal.
Below is a mining scenario to demonstrate the potential of a mining operation to produce huge revenues with even a modest gold grade of .1 ounce per ton gold. this example assumes a yard equals one ton. A one hundred yard per hour hour operation working only one shift per day would gross over $2 million a month!
would like us to contact you when we get new requests for either operating
loans or joint venture partnerships,
please contact us and provide your email, phone, or fax and we will
advise you as future opportunities arise.
we suggest that you BOOKMARK THIS PAGE
so that you can return often.
- NOTE: I
am not an attorney and this is not legal advice!
all mining deals involve some negotiation. Listed below are SOME common
sense considerations that you might wish to include in your terms when
negotiating with a mining company.
are considering a joint venture partnership it is often a good idea
to accept a smaller percentage and have your percentage calculated on
the basis of gross or net smelter returns. Gross smelter returns means
the value of the minerals that get mined and sent to the refinery or
marketplace. Net smelter returns means the value of the minerals sent
to the refinery minus the cost of refining. This means that your percentage
is determined before ALL other costs are deducted. This is much
more desirable than having your return calculated from a net profit
the company for not working the claim or producing, an investor should
require some type of minimum production with penalties if this is not
thing an investor might ask for is monthly or a quarterly payment schedule
with automatic penalties if
payments were not made on time.
are considering making a mining company a loan you will want good strong
collateral, a great return, and fast payback.
cases a thorough due diligence on your part is required to
confirm the validity, accuracy and truthfulness of any business venture.
buy or sell mining property contact