The Company wants to build an initial portfolio of 2 – 3 licences, has identified several prospective mining & exploration licences in the recognised Western Emerald belt that it intends to Invest in, some are producing quality emeralds, and others have the potential for quality production.
One in production or near production, and the other(s) offering strong exploration and growth potential. These licences can be developed in a phased manner to focus management effort and funding most effectively.
By having a pipeline of producing and non producing emerald assets we can strike a balance between early cash flow and the significant upside potential represented by greenfield exploration. Becoming 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 broad network of long-standing partners, which when coupled with the use of a specialist-licensing program developed by our Colombian partners, means we can gain first-hand knowledge, quickly and effectively once quality licences 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 number of existing mines depletes and they become inactive or their resources exhausted, current producers will buy the land around themselves and in new locations within the emerald belt.