So we are looking at setting up a portfolio of 10 mines; 3 Coal, 3 Industrial Minerals (Quarry Stones), 4 diamond mines. We are in a country in Africa which is the second biggest diamond producer in the world; Botswana. We are looking at raising 500 million Pula, roughly $50 Million. 

We are partnering with an Investment company that has an ICVC license (Investment Company with Variable Capital). So we will be targeting institutional investors with this license and also targeting retail investors through the crowdfunding license.i.e Total 1 Billion Pula ($100 million); 500 Million institutions and 500 retail. We are offering an Embedded Guarantee of Capital Protection to both sets of investors.  

Any takers or critics? 

Can you say something about the work conditions of the people working in the mines? Typical number of hours they work per day, typical hourly rate, minimal age that somebody is allowed to work in the mines?

Who is the current owner of the mines? The Botswana government? A non-Botswana corporate?

Hi Outrun, thanks for the help in the mining topics. The owner is 10 licensed people we take a private equity approach to develop their enterprises and then exit by listing on an Exchange. 

So all mines are in the very early stages of prospecting and initial exploration. Minimum age of workers is 21, typical hours is 40 per week and hourly rate is around $4.4 dollars. 

Thanks for answering Tedypendah, that sound like relative fair work conditions (if I compare the rate with other jobs in the region)

So all mines are in the very early stages of prospecting and initial exploration.

if cactusman is still around, this sounds like his sort of play
without proven reserves and cashflow predictions, I'd be loathe to get involved myself
"early stages of prospecting" means you're digging holes and hoping to find something?

We are offering an Embedded Guarantee of Capital Protection to both sets of investors.  

could you tell us a little about how this works?
what percentage of the capital is guaranteed, 100%? or less?
and who is backing up the guarantee?

Hi ppauper, there is some proven extraction of diamond deposits and coal that are currently on display. 100% of capital is guaranteed via ZCB's - sovereign. There is a lot of diversification going on in the 500 million, i.e we also offer exposure to listed equities, in the mining sector. 

So, break it down. Suppose you raise the $100 million. What will be the dollar allocation to:

-ZCB's
-Listed mining equities
-the 10 mines

- 30 is the ZCB (we want to attract pension funds)
- 40 listed equities 
- 30 the 10 mines
Additional hedging needs to be done on the listed equities to ensure capital protection. 

So all mines are in the very early stages of prospecting and initial exploration.

if cactusman is still around, this sounds like his sort of play
without proven reserves and cashflow predictions, I'd be loathe to get involved myself
"early stages of prospecting" means you're digging holes and hoping to find something?

Maybe a little understanding of OTM options and Jump diffusion??? @"hoping to find something"

So all mines are in the very early stages of prospecting and initial exploration.

if cactusman is still around, this sounds like his sort of play
without proven reserves and cashflow predictions, I'd be loathe to get involved myself
"early stages of prospecting" means you're digging holes and hoping to find something?

Maybe a little understanding of OTM options and Jump diffusion??? @"hoping to find something"

my bad, I misunderstood.
Maybe you could say a few words about what "all mines are in the very early stages of prospecting and initial exploration" means combined with your subsequent "there is some proven extraction of diamond deposits and coal that are currently on display," and what stage the project is at.

Perfect....I have to work on my communication skills

- 30 is the ZCB (we want to attract pension funds)
- 40 listed equities 
- 30 the 10 mines
Additional hedging needs to be done on the listed equities to ensure capital protection. 

I see. Well, my reaction is that the capital protection business will perhaps attract some retail interest, but is actually counter-productive for institutions. 

They will say "we don't need you to buy ZCB's or listed equities", so if you have a pure mining investment for $30 million, present that.

My two cents. 

Hi Alan...I was thinking institutions will be more risk averse, and hence will seek capital protection. The main target is Insurance companies and pension funds?

- 30 is the ZCB (we want to attract pension funds)
- 40 listed equities 
- 30 the 10 mines
Additional hedging needs to be done on the listed equities to ensure capital protection. 

I see. Well, my reaction is that the capital protection business will perhaps attract some retail interest, but is actually counter-productive for institutions. 

They will say "we don't need you to buy ZCB's or listed equities", so if you have a pure mining investment for $30 million, present that.

My two cents. 

Thanks Alan, what do you the prospects of presenting a single pure investment mining deal are compared to presenting a cohort of 10 mining deals?