There are many ways to participate in mining as an investor...

1. 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.

2. 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.

3. 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!

  • annual percentage rate returns of 35% - 50% - 100% or even more are common.
  • most 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.

By giving 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.

Sophisticated Investors should note that all of these companies will accept loans or joint ventures for less than the amount of the total funding that they need.

So smaller amounts may be committed to each of these projects as well.

Especially 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!

scroll down

Click on listing name to get more information :

Project Name / Listing #
Seeking
Funding Type
Top Notch Placer Mine #L1795
$4.5 million
will sell 85% ownership*
Gold Reef Flux Project #L1835
$750k
Noble Metals JV #L1855
$566k +
JV
Historic French Corral Mine #L2020
$2 million
20% JV
BC Gold Project #L2245
$480k CAD
JV
Turn-Key Underground Placer Mine #L2280
$1.25 million
25% JV
Nevada Placer Gold Mine #L2300
up to $400k
Loan

 

If you 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.

email us at steve.long@reagan.com

Otherwise, we suggest that you BOOKMARK THIS PAGE so that you can return often.


*Generous Terms - NOTE: I am not an attorney and this is not legal advice!

As mentioned, 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.

If you 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 figure!

To penalize the company for not working the claim or producing, an investor should require some type of minimum production with penalties if this is not met.

Another thing an investor might ask for is monthly or a quarterly payment schedule with automatic penalties if payments were not made on time.

If you are considering making a mining company a loan you will want good strong collateral, a great return, and fast payback.

In all cases a thorough due diligence on your part is required to to confirm the validity, accuracy and truthfulness of any business venture.

 


To buy or sell mining property contact

email us at steve.long@reagan.com

fax (208 ) 265 - 5377

 

 

 

 

lode listings small placers other minerals 10 newest listings joint ventures loans wanted
patented turnkey large placers sold listings links view all listings
lowest priced mines home get listed