This old mine is in Cuiabá/ Poconé belt in Northeastern Brazil, the principal owner structured the debt and Buy-out of the previous company using a shell company which is structured and TRX compliant, as the end game was (or maybe still is) to go public. They have all the right permits and environmental licenses to use lixiviation (modern processing technique). (btw they’re the only company in the area that have the permit to do so).
The Plant is purchase and on site ready to be put work, (needs cash for the civil works), with the plant up they can output 2,000 Oz of gold per month. Their pit’s are very shallow need a little bit of conforming, unlike from the rest of the other garimpos (mines), so his cost is at $500 USD per Oz.
The mine itself it’s a good deal, they need to raise around USD $10M, USD $5M in the mine (put the equipment already bought to operate) and USD $5 M to purchase the structure debt that comes with the equity to own 100% of the new company. Now, what I think is the north here, is to set another operation along side to operate the lixiviation (using the mine permits), to operate all tailings from the local mining belt, you have almost 130 garimpos (mines) less than ~100Km, all of them have a bad recuperation as they use mercury, (their recuperation is less than 50%), and they never saved for the raining day…now they’re are getting in to debt (high cost to conform the permits and all), so we can easily be the solution for them… providing the tech, for recuperation of the tailings, getting to sell the gold in the process, and reverting some cash for them… (super in off, but the gov, is desperate to someone start using cyanide instead of mercury, so they can crack down the garimpeiros…(the poor ones of course)
The mine itself today produces 6~7 KG of gold, with very course grinding, pulp and carpet. (this is generally what all garimpos have). Also, he think that we can purchase Au locally, at around 7% discount and after all the taxes, we can do a 2% profit.