An investment in a South African Diamond company through this private placement provides an investor with an excellent opportunity to take advantage of its full value curve upswing, from final stages of exploration through to mine development and full scale production in the west coast alluvial exploration projects.
The company have agreed to offer a potential investor sub-contract with our client which holds the official prospecting license. Investing at significant discount to current estimated values [private placement done at $20 million (Zar160million @R8.00 per USD)] market cap, with conservative company valuation at approximately $389 million positions seed investors to capitalize on a successful listing of the company in Hong Kong, JSE or AIM, London. The specific growth opportunities are described in greater detail hereunder:
Financial Structure
• Our Client will acquire a total of 23% of the share holding in this Diamond Exploration Company
• Total shares available for private placement in our client’s company will be 40% for $20 Million;
• It is envisage that a possible listing on the Johannesburg Stock Exchange (JSE) will be done once the final CPR has been done by our client
• The 23% shares held by Our Client will be swapped for shares in the listed entity on the JSE;
Distribution of Capital
Funds raised through private placement to be utilised as follows:
• Exercise of call option to acquire 23% interest in Our Client’s Company prospecting rights;
• Finance of phase 2: Execution of Mining Contract – U$ 19,000,000.00
All Geological Documents and other Document are Available for the Potential Investor to review; we need the following Document from any Investor before we will disclose any documents.
Letter of Intent on Company Letter Head.
BLC to Proof Financial Capability for the Transaction.
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