IN GROUND ASSET FUNDING:

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NATURAL RESOURCES, QUARRY AGREGGATES, MINERALS, ORES, OIL AND GAS

Term 3 – 5 years
Interest Rate 9% – 15%
Fee: 4% – 9%
Loan to Asset Value: 5% – 30%
Interest only and deferred 1st payment can be structured.
Minimum loan amount: $15-million (smaller loan amounts by exception)
Value determination: Market price multiplied by recoverable reserves.

Supporting documents required for investor review:

(*) Confirmed Resource Report not over 3-years old
(*) Executive Summary of Project
(*) Company Management Bios
(*) Use of funds and pro-forma financials
Corporate Bank Statement
(*) Exit Strategy for loan repayment
Future production plans and schedules
Details of current production (if applicable)
Contracts and Agreements for current production (if applicable)
Proof of asset ownership (or as lessee) and history
Asset Legal description and BLM #s
Assay, Engineering Report and Reserve Reports as applicable.
breakdown of 4.5mm cash equity into the project
3yr Corporate tax returnes
(*) Items marked are required for initial review. Those are the only items I need initially. Other docs will be requested by investor if there is interest in pursuing the opportunity.

Deal Progression:

The items marked (*) above will hopefully lead to a Conference Call with the investor. Following that conference call and assuming all parties are comfortable with the discussed project and terms, the investor will issue a Letter of Interest. Client signs and returns the L o I with a due diligence fee.
Due diligence typically takes 30-60 days and is followed by the investor issuing a Term Sheet and LOC. Funding typically occurs within the next 30-45 days.

Tags: In Ground Asset, commercial in ground, commercial development

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