The company has identified a number of prospective mining & exploration licences in the recognised Western Emerald belt that it intends to Invest in, some producing quality emeralds and some with the potential for quality production, our intention is to build an initial portfolio of 2 – 3 licences:
One in production or near production, and the other(s) offering strong exploration and growth potential. These licences will be developed in a phased manner so as to focus management effort and funding in the most effective way.
By having a pipeline of producing and non producing emerald assets we can strike a balance between early cash flow and the large upside potential represented by greenfield exploration. We will also become rapidly self funding, reducing shareholder dilution in funding the exploration and development of the exploration areas.
It is our belief and experience to date that not only are there quality licences available to acquire, but also there is significant scope to acquire these licences in a cost efficient, de-risked, deferred consideration manner.
Through our experience in emerald trading, we have a deep network of long standing partners, which when coupled with the use of a specialist-licensing program developed by our Colombian partners, means we are able to gain first hand knowledge, quickly and effectively on when quality licences will become available.
Mining Licenses once issued are granted for 30 years with a small fee for renewal after that. Since the 1990’s one man, Victor Carranza, has controlled the majority of the region and since his death in 2013 the remaining assets have been ceded to smaller players.
There are a finite number of licenses available within the emerald bearing geological zone. As the potential of existing mines depletes and they become either inactive or their resources exhausted, current producers will seek to buy up the land around themselves and in new locations in the emerald belt.