Kendrick Zale is acting as a principle agent for IPR Capital Ltd. in an exciting gold mining investment opportunity in Ecuador - full details available here as a downloadable brochure
www.kendrick-zale.com GOLD INVESTMENT OPPORTUNITY Gold as an investment opportunity The yellow metal has been an investor’s favourite during mes of worldwide financial and polical uncertainty due to its perceived qualies as a safe haven and as a hedge against inflaon. The precious metal hit an all me high in September 2011 of around $1920 an ounce and, even though it has fallen since to around $1201 at the me of wring (28th June 2013), the general market consensus is that the metal remains in a bull market, even if it is not quite as bullish as previously quoted. For example, the bank Nomura(1) has cut its 2014 forecast from $1,800 to $1,750. But, with further monetary easing expected, as well as geopolical tensions and currency issues, any falls in the gold prices will probably be seen as buying opportunies for gold investors which, in turn, should help the price trend back up towards its all-me high. www.kendrick-zale.com
Transcript
www.kendrick-zale.com
GOLD INVESTMENT OPPORTUNITY
Gold as an investment opportunityThe yellow metal has been an investor’s favourite during times of worldwide financial and political uncertainty due to its perceived qualities as a safe haven and as a hedge against inflation. The precious metal hit an all time high in September 2011 of around $1920 an ounce and, even though it has fallen since to around $1201 at the time of writing (28th June 2013), the general market consensus is that the metal remains in a bull market, even if it is not quite as bullish as previously quoted. For example, the bank Nomura(1) has cut its 2014 forecast from $1,800 to $1,750. But, with further monetary easing expected, as well as geopolitical tensions and currency issues, any falls in the gold prices will probably be seen as buying opportunities for gold investors which, in turn, should help the price trend back up towards its all-time high.
Previously, the easiest way for investors to speculate on the price of gold was to buy the physical commodity directly, or buy shares in gold mining companies. IPR is currently offering the opportunity for investors to purchase a share of the economic benefits of the mining rights of the IPR Capital mining project.IPR is securing from the land owner the mining rights for 5 years. The mining company that owns the concession will use some of this licensing money to improve the operation, in turn improving the output. The benefit to the mining company is that it will share in the production with us and will own the entire asset after the 5 year licence has expired. If, alternatively, shares in the mining company were sold in the early stages, these would only achieve a very disadvantageous price and the current owners would never have control of the business. One reason why many junior miners do not succeed is that the original owners move to another project that is more economically viable but in this project, IPR’s innovative funding solution results in the miners, the partners in LP and IPR Capital all having mutually aligned interests.
Mineral Rights Opportunity in EcuadorBackground
Gold mining has been part of the landscape of Ecuador for centuries with some academics suggesting that it began as early as 3,500 B.C. Many historians high-light the Spanish invasion of 1532 and the major industrialisation of the early 20th Century as significant periods shaping Ecuador’s mining heritage.
Gold remains a boom industry in Ecuador, as highlighted in a recent BBC News re-port(3) which also ratified the purchase of the economic benefit of a mine to be a solid investment, In an interview, an artisanal miner disclosed that, each year, his venture is now paying him 4 to 8 times the $50,000 invested.
The substantially increasing economic viability of mining gold has resulted in the growth of artisanal, or put simply small-scale production, mining. Even though this can be a lifeline to locals, it carries significant risks including the dangers inherent in unsafe working conditions and the real and considerable threat of environmental contamination.
Environmental contamination is caused by mercury used in the gold extraction pro-cess. This clearly is not only harmful to the miners who handle it – and Bloomberg recently reported it that this could affect up to 16 million miners (2), but, more signifi-cantly, the local landscape, air and water table are all endangered and this can have far- reaching effects on the food chain.
The Asset
Clearly, as the gold price remains elevated, the desire to mine is going to remain strong but we need to look for opportunities that can offer a return with any associated envi-ronmental risks being as small as possible. Kendrick Zale Ltd is pleased to offer inves-tors the exciting opportunity presented by mining rights in Ecuador.
The asset is a mine shaft in the El Oro region in Ecuador, a region that is famous for gold. So much so that ‘El Oro’ literally translates as ‘the gold’. The region has been highly publicised on the BBC (3) highlighting its high reserves of precious metals . IPR Capital has commissioned independent analysts to visit the mine. They have confirmed that it has been previously mined (albeit artisanally) and that there are clear signs of gold. Videos of this can be viewed in the product area of our website. The exact entrance to the mine shaft has the co-ordinates X642990/Y9618279.
Mines in the immediate area include:
• The Dynasty Project, to the south of our mine shaft, which has produced 3.9 million oz. of gold also discussed in the BBC Report (3).
• The Aurelan – Fruita Del Norte, to the east, has produced 13million oz gold• PIMPA, AMGOLD- QUIMSACOCHA and PIMCA projects are all producing more
than 220,000 oz. of gold per year.• The Capa Rosa Lab, analysed three levels of the property and have issued a
geological report disclosing between 8- 34 grams per of gold per tonne with the average for the area being 15 grams per tonne.
Our initial estimates that our mining shaft will produce 7.5 grams per gold per tonne are also based on historic information from our mining partner Monteverde S.A. We anticipate that, with modern mining techniques and equipment, it will be possible to move deeper into the mine and increase the likelihood of hitting the deeper rich veins of gold, known locally as ‘calvos’. These can yield up to 200 grams of gold per tonne of ore mined. Clearly, there is no way to guarantee how much gold will be produced from this mine shaft but, as detailed below, we have structured the project to benefit partners before IPR Capital or Monterverde S.A. start receiving revenue.
Monterverde S.A
Monterverde S.A is part of Grupo Minera del Pacifico which has over $120million worth of mining assets and has been in the region for over 10 years and has never failed to produce gold from one of its mine shafts. Also, they are a leader in Ecuador’s envi-ronmental mining revolution and have green refining plants that are less damaging to the local surroundings and comply with new laws that prohibit the use of mercury (4). They will take control of the day to day running of the mine, including the necessary modernisation of the mine shaft.
The Investment
IPR Mining 06 LP will hold the exclusive licence to 5 years’ production from the shaft and Kendrick Zale Ltd is offering to sell partnerships in this LP with the smallest pro-portion being 0.04% at a cost of £3,150.00. Please note that additional administration fees will be applied.
All new partners in this exciting project coming on board will receive 150% of their purchase funds back before either IPR Capital or Monteverde S.A (this project’s Joint Venture Partner) receive any revenue from the LP. Once the investing partners have received this, the revenue will be shared according to the percentage ownership. This is assured by and detailed fully in schedule 1 of the Limited Partnership agreement. Partners should note that IPR Capital and Monteverde S.A will own 25% each of the Limited Partnership.
Based on the analysis done by ourselves and the geologists’ reports on the area, we are looking at providing clients with a return of 250-300% over the 5 year period. It is important that investors understand this is not a fixed income product and that the re-turns may vary. However, these estimates are based on conservative values. There are many factors that can affect returns such as currency fluctuation, gold price change, naturally occurring events, understandably we have no control over these factors.
Kendrick Zale is acting as a principle agent for IPR Capital Ltd.References
Due to the nature of our business and our varied range of financial products our employees are given market training from industry specialists. We are very confident that our team possesses the skill set and efficiency required servicing your account to complete satisfaction. As a client you will gain privileged access to our ‘member only’ services.
To find out more about Kendrick Zale and Gold Investment opportunities, please visit www.kendrick-zale.com, or contact us:
Our clients have the peace of mind knowing that they are dealing with a company which adheres to strict compliance procedures. The products that we offer are either tangible or held in your very own holding account. We carry out regular ‘in-house’ audit checks to ensure your records are kept up-to-date.
We treat client data with the upmost confidentiality adhering to the Data Protection Act 1998. We do not sell your data or information to third parties.
In the unlikely event that we went into liquidation our solicitors would act on behalf of our clients with records of our clients holding. This would be passed on to the liquidator so that it can be treated as separate property from the company.
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