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$3 Million Gold Mine


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#1 ando638

ando638

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Posted 27 March 2010 - 03:20 PM

The company is looking for someone to purchase the note for addition funds to the mine. This mine produces gold primarily and silver.

The Payer is the President of the Mining Company. He is estimated to be worth $23 million and has a credit rating of 700+.

The Sale date of this note is January 2010 for $3,000,000.

Interest Rate is 13% for only 3 years.

Balloon Date is 02/15/2013 at 3,032,500

There is a 15 year amortization with 3 years guaranteed. The most significant ones are as follows:

There is a prepayment penalty on this note which penalty will be calculated as all of the interest that would have been paid on the note had the note not been prepaid. For example, if this note is paid prior to the end of the three (3) year term, then the prepayment penalty will be calculated at a daily per diem rate of One Thousand Sixty Eight and Ninety Nine Cents ($1068.99) multiplied by the number of days that remains on the note through the three year term.

Any payment on this note that is overdue for more than Fifteen (15) calendar days from its due date shall, if requested by the holder of this note, be increased by an amount equal to Five Percent (5%) of the amount overdue payment unless such amount exceeds the maximum permitted under applicable law in such circumstances, in which the amount of the overdue payments shall be increased by such lesser maximum amount as legally may be allowed, and lenderís entitlement to such sum shall be in addition to, and not in lieu of, all other rights and remedies to lender as a result of such overdue payment.

Net Smelter Returns Position:. In exchange for the Lenderís loan, the Company conveys to the Lender a 10% net smelter return position in the Mining Company. The Lender shall participate in net smelter return from the operations of the mine and will be paid 10% of all net smelter returns on a monthly basis until such time as this agreement becomes null and void. Lender not have a managing or equity interest in the Company whatsoever but shall only be entitled to itís percentage of net smelter returns as set forth in this agreement. The net smelter returns is in addition to the interest due Lender through the promissory note between Company and Lender for the loan amount of Three Million Dollars ($3,000,000.00).

5a. This contract shall remain in force for a period of 5 years from the execution date of this agreement, with the only exception being at the end of the 3rd year the Mining Company has the option and right to buy out the final 2 years of the 10% of Net Smelter Return at the rate of Five Hundred Thousand Dollars ($500,000.00) per year - not to exceed a total of One Million Dollars ($1,000,000.00) for the final 2 years.


I have an electronic copy of the Promissory Note, Net Smelter Returns Contract, Property Valuation Report, Mcleod Geological Report, Addendum to Term Sheet Report, Inground Asset Report and the Payerís Social Security Number.

For anyone interested please send a private message by Monday March 29th.




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