Joint Venture (JV)
Place In-Ground Assets into Trade
Joint Venture (JV) Outline:
Joint Venture Approach to placing In-Ground Assets into Trade
Summary :
The Joint Venture partner provides funding for various expenses and an insurance wrap or cash or corporate bonds.
The mine owner provides their NI 43-101 report.
A trade is arranged based on a forecast 20% LTV with a monthly trade profit payment of up to 30% of that months gross revenue’s against this expected Gross Revenue Amount to be around 100% every four weeks for 40 weeks. Trade profits are shared equally between the JV partner and the mine owner.
80% of the trade profits are to be allocated to humanitarian projects.
The trade is confidently expected to begin 3 to 4 weeks after contract is signed.
The purpose of the trade program is to generate funds for projects. A part of the trade profits is freely available to the mine owner – this will be a considerable sum, far in excess of the costs of mine development.
Important Points :
The JV partner arranges substantial funding for each in-ground asset:
• To engage directly with the Platform, set up costs of £350,000 (equivalent to USD 460,000) are paid directly to the Platform. This is to structure three JV companies, establish banking in the preferred jurisdiction to hold the NI 43-101 and to create the credit line against the asset.
• To fund the considerable cost of the required insurance wrap, which will typically be 3%- 5% of the LTV.
This funding has been obtained by the JV partner in bulk to cover multiple mines. Allocations from this bulk funding are made to each mine cleared by the JV partner for entry into the program.
The JV partner works directly with the CEO of a Tier 1 trade platform in London. Once funds are allocated to the separate account created for a mine, the JV partner arranges a time for the mine owner to have a call directly with the platform. Following this call transaction codes are issued and a period of around 30 days is then required for structuring companies and bank accounts, as well as funding the insurance wrap, so that the trade may begin.
Special purpose vehicles and accounts will be structured in a preferred jurisdiction to support the in-ground asset returns. This will vary depending on the passport of the signatory and domicile, so as to allow funds to move freely and cleanly globally.
The Platform has the ability to structure multiple parallel trades to support long-term project funding requirements. There is no cap on funds traded so long as it is primarily for project support. It is one thing generating funds; the important factor is that when the funds are generated they need to be able to move freely and clearly within the banking system. The platform currently trades with Sovereign and Government parties in multiple jurisdictions.
Our undertaking :
We work closely with the JV partner and the mine owner to monitor progress, support the production of the detailed KYC when required and generally to oversee all arrangements. Once the trade profits begin to flow we are fully available to arrange further trades based on these revenues, as required, and to provide full support on the application of funding to suitable projects. We are aware that the volume of funding for projects will be considerable and that the mine owner is unlikely to have access to projects on sufficient scale. This can be a concern to the mine owner and we, as well as the JV partner, can shoulder this important responsibility.
We will enter into a contractual arrangement with the mine owner to receive a fee of 10% of the mine owner’s share of trade profits. Much of this will be invested into our own projects.
We are acutely conscious of trades for in-ground assets being offered, followed by protracted periods of silence (and no end result) or alternatively a file being passed along a broker chain. We are direct to the JV partner who in turn is understood to work directly with the platform and we will within 4 weeks have a decision point at which the mine owner decides, on the basis of progress we have seen, whether to continue or withdraw.
Dr. Abe Beagles | May 2025
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