PRE-IPO Australian Mining Resources Company

PRE-IPO Australian Mining Resources Company

INTRODUCTION

An Australian Mining Resources Company has the vision to become a profitable mining and exploration Company in Australia and overseas that will excavate and extract gold and other minerals from resource deposits. Achievement of this objective will create wealth for shareholders through capital growth and dividends. The Company aims to achieve this goal through a strategy to acquire undervalued and somewhat distressed small to medium scale mining projects and mineral assets that will provide profitable income streams to the Company.

The Company has identified an opportunity where significant profits can be achieved by acquisition and joint venture of existing small to medium scale placer gold operations that have proven gold deposits using the latest placer gold recovery techniques. Gold recovery techniques have been substantially revolutionised over the past 20 years where gold recovery wash plants have become mobile, mounted on a flat-bed semi-trailer chassis and able to process gold bearing material up to 400 tons each per hour. These wash plants boasts fine gold recovery down to 50 microns, making it effective to recover between 95% and 98% of the gold suitable for river bank-run sedimentary material processing for a high yield and very cost effective system requiring minimal operator skills. Several wash plants can be grouped together in parallel to process 1,000+ tons per hour and very capable of processing lower grade ore bodies.

The Company is reviewing a number of opportunities to acquire existing producing gold mining operations that fall into the distressed asset category and is seeking to raise the capital required to acquire some of these assets and become an immediate gold producer in Australia, USA and Canada. A number of projects are also being reviewed in Mongolia.

SEED CAPITAL INVESTMENT

The Company is seeking initial seed capital up to AUD $200,000 (MYR 625,000) for the immediate company requirements and progress immediately to list on the Australian Stock Exchange (ASX) through an initial public offering (IPO). The seed capital will be used for:

* Company Office Establishment – Perth (Western Australia)
* IPO requirements including prospectus; legal requirements; ASX initial listing fees
* Due diligence requirements of project acquisitions
* Application for prospective exploration projects (Australia)

The IPO will raise the capital required to acquire the gold mining operations and exploration projects. It is proposed to raise the capital through the IPO prospectus with 3 levels of subscriptions:

– Minimum Subscription
– Full Subscription
– Over Subscriptions

It is anticipated the minimum subscription for the IPO will be around AUD $5 million.

The higher level of subscription would allow the Company acquire additional gold producing projects; increase the exploration budget; or acquire additional equipment to increase the production of one or more mines. The current project opportunities and funding requirements for each project are described below.

RETURN ON INVESTMENT

It is anticipated the seed capital requirement of up to AUD $200,000 required under this offering will be share equity based at a price of AUD 5 cents per share. The minimum listing requirements of the Australian Stock Exchange is AUD 20 cents per share. This will a potential of up to 300% return on investment for a successful ASX listing. It will be the investor(s) responsibility to ensure they understand of pre-ipo seed capital investing and that some of the investment may be subject to an escrow period.

TIMEFRAME

The company is currently writing a prospectus inhouse for the proposed company acquisitions and projects. The Company has received positive feedback from Australian brokers and promoters. The Company will engage into broker negotiations during January 2012. It is anticipated to list the Company onto the ASX by April 2012 or earlier; providing all necessary listing requirements have been completed.

MANAGEMENT

The management team is in place and has the necessary experience ready for a listed Company including Commerce Degree (Economics and Banking) & Applied Finance; experience in business management, resources sector and financial services industry, stockbroking and wealth management.

EXIT STRATEGY

The Company will progress for a stock market listing on the Australian Stock Exchange (ASX).

ANNUAL EARNINGS

The gold producing projects at hand are currently being assessed. The Company is expected to be cash flow positive with Earnings Before Interest and Tax (EBIT) in excess of AUD $2,500,000 per annum.

CONCLUSION

Many new exploration Company\’s appear on the Stock Market with an exploration program in the hope to find an economical resource to develop and mine. Our Company aims to achieve positive cashflow immediately by acquiring existing, producing mineral deposits where the cashflow can be used to fund further exploration, development of existing mines and acquisition of additional mines.

CONTACT INFORMATION

Dennis Fry ( westaustfry@gmail.com)

Postal Address : PO BOX 551
QUEANBEYAN
State : NEW SOUTH WALES
Post Code : 2620
Country : AUSTRALIA

Telephone : +61 435 818 048
Fax : +61 7 3112 6111
Mobile: +61 435 818 048

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