<ul><li>INTRODUCTION </li></ul><ul><li>The owners of 36 hectares (89 acres) of property in the elevated area near the capital </li></ul><ul><li>city of Santo Domingo have a desire to sell the land and its mineral deposits comprising </li></ul><ul><li>of limestone. The new buyer of the property, plans to harvest the </li></ul><ul><li>limestone shale and marble for commercial and residential use within the Dominican </li></ul><ul><li>Republic, as well as North, Central, South America and parts of Europe. </li></ul><ul><li>The property will be developed for the quarry mining of the deposits including an </li></ul><ul><li>alternate access road to and from the mine to avoid heavy traffic in the nearby towns. </li></ul><ul><li>Ultimately, the operation will be expanded to include manufacturing and retail distribution </li></ul><ul><li>of the products to the end users. </li></ul><ul><li>This high quality marble is ideally situated for distribution in the Americas and for </li></ul><ul><li>manufacturing with the abundant, low cost labor available in the Dominican Republic; this </li></ul><ul><li>coupled with the proximity to the end user makes this project a very attractive investment. </li></ul><ul><li>In all the operations, we will be ecologically minded to preserve air, land and water quality </li></ul><ul><li>within the Dominican Republic. Our ultimate goal is to return the used land to its original </li></ul><ul><li>condition. </li></ul>
INTRODUCTION Continued The volume of the marble utilized within the business plan was obtained by using a prominent geologist’s survey which states that by simply taking a single strip of marble one meter thick over the base of the property, and extrapolating it over to the recoverable volume on the property. The dollar value of the marble grew from the simple wholesale of the mined marble at $1.7 billion dollars to the ultimate value of the marble when it is sold to the final user. Of course, these values do incorporate many more operations including cutting, polishing, marketing, and final fitting into the retail customer’s location. The largest part of the first stage investment is required to purchase the property and its mineral rights from the owners via its Broker and Mining Corporation, who now has complete legal control of the sale. Once the sale has taken pace, a new mining entity was formed which will head all operational parts of development, mining, manufacturing, marketing, sales, and procurement of the aforementioned mineral deposits.
CORPRATE AND EXECUTIVE SUMMARY The world market for dimensional natural stone at the retail level has been valued at 60 billion US Dollars per year, as offered by the Floor Covering Weekly. And, most importantly, it is currently growing at a rate of 20% per year. Since a large percentage of the natural stone being used in the United States and the Dominican Republic comes from Europe, the simple geographic location of a marble quarry in the Dominican Republic becomes obviously attractive. There are a number of marble and granite mines excavating the mineral deposits in the Dominican Republic, however very little is currently being exported as there is a great domestic demand for limestone deposits, specially the developing tourism areas of the Dominican Republic. Currently the demand is so great that these targeted areas are still importing a great amount of limestone. We will attack the domestic market as well as the international export market. Another attractive feature is the relatively low labor rates for an intelligent and industrious labor force. For this reason and others, we plan to proceed beyond the quarry extraction of the stone. Especially for the market in the Dominican Republic and the Americas, we plan to cut, polish, and manufacture our own selection of colors for direct installation. The rapidly growing tourist economy in the Dominican Republic is hungry for the service. We will also set up independent retail and distribution centers in the Dominican Republic and the Americas
CORPRATE AND EXECUTIVE SUMMARY Continued We also have every intention of developing the property and the mining with complete consideration for the ecology, the local economy, and the welfare of the residents who might be affected by the operation. For this reason, we will spend all the time and effort which is required to insure that every step we take ... keeps the above parameters in the forefront of our minds. The main seaport of Hiana is located 20 minutes away and accesses to export governmental channels have been already established. We will be able to fill container loads with ease and have them onsite and ready to ship the within the hour of being sealed. The location of the operation and the near proximity of the Caribbean maritime lines are highly suited to serve the export of our products. Thus we will be able to serve both the rapidly expanding tourism and residential markets in the Dominican Republic, as well as the rest of the world.
MARBLE VALUES As illustrated in the geologist’s report, the property includes 36 hectares (360,000 square meters or 89 acres) with a pair of mountains of marble to an elevation of 80 meters above grade. Our geologist, who may be the most eminent in the country, estimates that it is likely to be 60% exploitable for mining. In his first preliminary study, he evaluated a single strip of deposits one meter thick over the entire area of 360,000 square meters. Without any processing of the material, his estimate of the value of that single strip of marble to be $36 Million U.S. Dollars . If we then include the material about that first one meter strip, our simple math; 80 meters high times 60% exploitable times the value for the one meter strip at the base, equals $1.728 billion U.S. Dollars. And this has not even considered the value of the marble below grade, which according to the geologist it would be safe to say that the deposits will go as deep as another 80 meters below grade. Also, our relations with the adjacent landowners will also give us the option to buy all the adjacent property, which might double the reserves.
MINE DEVELOPMENT PLAN The development of the quarry mine adjacent to the city where mining operations are taking place, will follow considerable planning including more intensive geological testing, transportation studies to move the marble with the least amount of disruption to the local traffic, ecological studies to preserve the natural habitat including water conservation and control, and a favorable impact on the residents in the entire region. The impact on the residents will involve the input of new wealth into the community resulting in more jobs, entrepreneurial opportunities, new and improved schooling for both English and entrepreneurial training, tourist development relating to the quarry mining operations and the hillside avocado farming, as well as the building of new homes, corporate offices, and hotels. We envision a good two years of development before we will be a commercially viable operation. But during that period, the region around the mining site will be undergoing a positive transformation. Some of the specific items within the development plan will include a CPM scheduling.
CPM SCHEDULING All of the development will be planned utilizing the latest concepts involving CPM (Critical Path Management). This is the latest computer aided scheduling procedure used for multimillion-dollar construction projects all over the world. It actively incorporates the interrelationship between each activity such that a new activity may not begin until its logical sequential activity is first completed. In addition to the interrelationships, each activity has a time duration, responsibility control, and cost factors. As a result of this program, it is almost impossible to overlook a critical activity in the schedule, and, because of the computer control, the entire schedule may be instantly updated any time something in the schedule does not proceed as planned. In accordance with the name of the scheduling method, it has the ability to let the operator know the single most “critical” item that needs to be looked at any time during the project. In other words, it actually shows you a critical path through the whole schedule describing which activities have the most importance toward the timely completion of the project or multi-projects.
CPM SCHEDULING Continued Fast Track Schedule and Cash Flow Analysis of the First Year of Operation Our Engineers have developed a CPM Program; The CPM schedule shows the complete planning for the first year’s operation of the mine including all resources of equipment, personnel and costs. The Cash Flow is projected on a weekly basis for the first year. Toward the end of the year, we will be realizing almost one million dollars profit each month. The schedule lists each activity and how that activity in related to the preceding and succeeding activities. It also shows the cost involved in equipment and personnel for each activity. And the costs are time related based upon the scheduled duration of the activity.
ARCHITECTURAL AND ENGINEERING STUDIES Following a more extensive geological study, which will tell us how best to extract the marble from the property, we are then concerned with how to develop the property both ecologically and esthetically to maintain a healthy and economically attractive region. The engineering studies will be related to water control and conservation, in addition to dust control, and the most efficient transportation routes as the project begins and progresses. The architectural interests include designs of corporate and operational offices for the Mining Corporation. In addition, we are planning to design and build homes for the experienced, operational management, which will have to be brought in from outside the area. As the project develops, we will also develop some tourist facilities including a hotel or motel to attract groups interested in mining and agricultural ventures. We also want a comfortable location for international professionals and buyers of the marble to stay as our market develops.
DOING BUSINESS IN THE DOMINICAN REPUBLIC The Dominican Republic is a country that offers multi-fold opportunities to attract businesses and foreign investments. Geographically the country is located in a considerably very good strategic position which offers an easy access to the markets of the United States, Latin America, the Caribbean and Europe. Maritime lines leading from South America towards Europe run very close to the country and thus giving easy access. Its economy grows every day and it also supports the current process of modernization which is reinforced with an aggressive effort to promote the liberation of commerce and economic integration, along with the predominant atmosphere of a stable government and democratic consolidation, has made the Dominican Republic an ideal option for companies and individuals of any nationality that want to expand its investments growth. The current stage of stability of the Dominican economy is the result of the experience of the period that started in 1987 and continues through today, where the fiscal deficit, the monetary policy have a reality relationship to the current macroeconomics, where there is no longer disappearing of capital and the distrust of the official policy of the economy, where there is no longer a very strong inflation crisis, which caused an economic, financial and social crisis.
DOING BUSINESS IN THE DOMINICAN REPUBLIC Continued The United States and much of the European Union have a vested interests in the economic well being of the Dominican Republic. Laws have been created and are being enforced by domestic and international entities to protect and promote foreign investments and thus creating safe heaven to conduct international business. President Fernandez, a US educated attorney and the Dominican Congress have made a pledge to keep all foreign business safe as if they were Dominican themselves. The US Embassy keeps a Commercial Attache on the pulse of all US foreign nationals doing business in the DR; as well as the American Chamber of Commerce who is in the forefront of all economic development within the country. Former Presidents, Bill Clinton, George Bush Sr., currently have vested interests in the DR. They both keep homes here as well.
THE OPPORTUNITY As a result of the geologist’s report it has indicated that there is $36 Million US dollars of marble on a single one meter thick strip across the property; the geologist has stated the he has under estimated the current value of the mined marble by ten fold multiple to keep the numbers at a workable scale. The owners had originally asked for a selling price of $5 Million US dollars; however Mr. Rolón is confident the owners will accept an offer of $1.5 Million. This sale will conclude the owners participation and will relinquish all rights under the law for the aforementioned property and they have assured that there is no liens whatsoever against the property; this is already assured through a government certificate already included within the Business Plan. AMOUNT OF INVESTMENT: Stage One: $3 Million US Dollars Stage Two: $10 Million US Dollars (in Escrow), (Investor keeps control)
THE OPPORTUNITY Continued This two-stage investment opportunity is as follows: First we are requiring that $3 Million US dollars be utilized to purchase the property and establish a corporate entity. This amount will also be utilized as operational capital as depicted in the operational chart in the Business Plan. Second, we are requiring that $10 Million US Dollars be kept in Escrow at the control of the investor. This will consist of 0% risk to the total amount. This will be utilized to create the USD $100M needed as per our forecast.
ROI WILL BE AS FOLLOWS: First stage ROI: • First in line as funding becomes available • The USD $3M: A 30% return on investment preferable within a 12-month period but not to exceed 24 months. • All commissions, returns and costs due to the approved intermediary, for all services rendered, will be covered by us in a separate signed agreement. Second Stage ROI: To further explain the second stage funding, we are requesting the USD $10M, to be kept in escrow and in control of the investors; this amount will serve as an apparent operational base for financing purposes and will be returned in its entirety as soon as funding is secured. This period will last no longer than 12 months. As a return on this investment we are prepared to offer a 5% return annually of all profits acquired by the Mining Corporation after all costing and expenses are settled through its mining operations; this participation will NOT encompass any rights of ownership.
ROI WILL BE AS FOLLOWS: Continued Collateral: The collateral is the property itself and the $1.7 billion dollars worth of marble therein. In addition, all equipment bought for the mining operations, both new and used, will be real collateral. As the mine is being developed, the value of the property will continually increase. Currently the property has immediate profitability where slate shale can be mined for immediate sale, as there is a current market in the Dominican Republic.
MARKETING PLAN Industry: Dimensional Limestone (Marble) Use of funds: Mining Limestone, Manufacturing, Acquisitions, Distribution, Marketing, Sales and Product Diversification Current Valuation: From US $36+ Million Dollars to US $1.78 Billion Dollars Business Description: The Caribbean Mining Corporation quarries will: manufacture and distribute its own various colors and grades of marble. Our unique products will be used for the purpose of construction and renovation. Our natural stone products will be mined and manufactured in the Dominican Republic and distributed in most major areas of the U.S., parts of Europe and all Latin America through our own distribution and points of sales to end user.
PROJECT CURRENT VALUATION: FROM US $36+ MILLION DOLLARS TO US $1.78 BILLION DOLLARS
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