sumitra
Local Footprints…Global Reach
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Purpose
The information provided is directed towards friends, acquaintances, experts, industry personnel and such for the
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Overview
Exit Targets
Opportunity
High net worth investors from
Asia & Middle East
Forgotten or Abandoned PROVEN
resources in
West Africa
Challenge
Complex political and cultural
Business Model
landscape
FASTER, CHEAPER and LESS
RISKY approach to “shovelready” mining package
Expertize
Business knowhow, network
and execution skills
West Africa Minerals
Many parts of Africa have long been known to be rich in mineral resources. Eleven of its countries, especially
in southern and western Africa, rank among the top ten sources for at least one major mineral
- Africa’s path to growth, McKinsey Report, June 2010
List of Mineral Resources in West Africa
Metals & Minerals
 Bauxite
 Copper
 Cobalt
 Diamonds
 Gold
 Gem Stones
 Granite
 Iron ore
 Manganese
 Molybdenum
 Nickel
 Platinum-Group Metals
 Titanium
 Zinc
 Zirconium
Industrial Minerals
 Industrial Diamond
 Phosphate Rock
Mineral Sands
 Rutile
 Ilmonite
 Leucoxene
 Zircon
West Africa is bestowed abundantly with quality minerals
Opportunity & Challenges in West Africa
Checkered Past
 Lax of rule-of-law meant Mineral Rights were granted and confiscated
at whim of the Chief, Ruler, Dictator or President
 Powerful sovereign companies dictated terms and flourished
 Smaller companies and adventurous players from weaker nations
learnt “lessons” the hard and expensive way
Opportunity
 Many explored and proven resources are waiting to be re-discovered
and monetized
 Old files in Govt. offices and abandoned sites contain samples that
documents such resources
Understanding HOW
the system works
&
How to WORK the
system is Imperative
Current Challenges
 Most west African nations are nascent democracies and power is
distributed across Federal Government, Regional Governors, Local
Chiefs and Villagers
 Clear understanding of the power play dynamics is essential for success
Proven resources waiting to be re-discovered by those who can navigate
the complex West African system
Business Network in West Africa
Target Countries
West African Experience
• Over 4-years of experience in navigating and
dealing with
1. Mali
2. Guinea
3. Sierra Leone
4. Ivory Coast
5. Liberia
6. Togo
7. Benin
8. Ghana
9. Mauritania
10. Senegal
–
–
–
–
–
Federal and Regional Government
Bureaucrats
Professionals
Village Chiefs
And Local Populace
• Spent time and energy developing network
and access into heartlands and villages
• Deep understanding of West Africa, its tribal
makeup, culture and people
• We understand what it takes to get the
blessing and buy-in from these stakeholders
to obtain permits and clearances.
Deep understanding about managing west African stakeholders enables
su mitra to obtain mining permits and clearances
Business Model
Identify
abandoned or
forgotten resource in
West Africa
Obtain
“fresh” mining
permits for the
resources
Buyers receive a “Shovel Ready” package
Which may include
 All Permits, Licenses and Permissions
 Comprehensive Business Plan
 Detailed Mining Plan
 Off-take Agreements
 Local support team
 Debt & Other funding Commitments
 Continued support and guidance
There exists a narrow “Arbitrage Window” in
Africa to leverage these opportunities.
Re-Prove
and certify resources
using modern
technology
Showcase
&
Sell
Exit Strategy
Acquirer
 Global growth center
shifting to the east
 Newly minted billionaires
and multi-millionaires from
China, India, South Korea,
Indonesia and Middle East
Characteristics
Requirements
 Cash rich, aggressive and
ambitious
 Voracious appetite for
mineral resources
 Comfortable investing in
high risk resource plays
 Willing to bet on Africa, but
NOT on African Companies
or Governments
 Proven Resources have to
be validated and certified
by globally recognized
standards, institutions and
experts
 A shovel ready package that
includes all plans, permits
and clearances for mining
Cash rich Asians & Middle Eastern investors are willing buyers of
African resources validated using global standards
Overall su mitra Process
Phase-1
Phase-2
Phase-3
Setup
Acquire
Showcase
Identify
Re-Certify
Sell
Setup Operations
in Canada,
India & Africa
Identify and select
Resources
Acquire Previously
“Proven”* Resources
Re-Prove, Certify
and
Obtain 43-101
Showcase Certified Assets
to Interested Buyers in
Asia & Middle East
Negotiate & Sell
Targets are non-certified, but previously proven resources, that
have been abandoned or forgotten
Mineral Exploration Process
su mitra’s Operating Space
Permit Type
Reconnaissance
Resource
Reserve
Mining
Area (sq. km.)
1000’s
100’s
10’s
10’s
Activity
Aerial Survey
&
Field Visits
Field Visits
&
Drilling
Drilling
&
Validation
Planning
&
Test Production
Time (months)
6
12
12
12+
Cost ($’000)
100
1000
2000
*
Returns (x)
2x
3x
5x ~ 10x
*
Reduced risk
su mitra’s approach reduces speculation by only acquiring
resources with sufficient geological data.
Process & Cost
COST
PROCESS
EVALUATE
40 Concessions
1
2
3
4
$300,000
5
$2,000,000
ACQUIRE – 5 Permits
($400,000 per Permit)
RE-PROVE
12
$1,500,000
CERTIFY
SELL
15
$1,500,000
18
$1,500,000
21
$1,500,000
24
$1,500,000
Months
TOTAL
$9,800,000
Investment & Returns
Process
Sum
Evaluate 40 Concessions
300,000
Months
0
3
6
9
100,000
100,000
100,000
12
15
18
Acquire 5-Permits
2,000,000
400,000
400,000
400,000
400,000
400,000
Re-prove / Re-validate
Asset-1
Asset-2
Asset-3
Asset 4
Asset 5
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
Total Expenses
9,800,000
Revenue
Proven Asset Sold
100,000
800,000
800,000
1,000,000
1,300,000
1,600,000
50,000,000
Net expenses/sales
Cumulative expenses/sales
-100,000
-100,000
-800,000
-900,000
-800,000
-1,700,000
-1,000,000
-2,700,000
-1,300,000
-4,000,000
-1,600,000
-5,600,000
Capital Calls
Cumulative Capital drawdown
1,000,000
1,000,000
1,000,000
2,000,000
1,000,000
3,000,000
1,000,000
4,000,000
2,000,000
6,000,000
2,000,000
2,000,000
8,000,000 10,000,000
Net fund cashflows
-1,000,000
-1,000,000
-1,000,000
-1,000,000
-2,000,000
-2,000,000
Multiple of Invested Capital
Fund IRR
-2,000,000
21
24
27
30
33
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
1,200,000
1,200,000
900,000
600,000
300,000
Asset-1
Asset-2
Asset-3
10,000,000
10,000,000
10,000,000
Asset-4
Asset-5
10,000,000 10,000,000
8,800,000
8,800,000
9,100,000
9,400,000
9,700,000
3,200,000 12,000,000 21,100,000 30,500,000 40,200,000
8,800,000
8,800,000
9,100,000
9,400,000 14,100,000
5.1x
126%
Note –
1.
Return expectations are listed at the fund level
2.
Asset sale price is an estimated average based on selection criteria and
past experience
Recent History & Success Record
Location
Permit Cost
Resource Estimate
Measured and
Indicated
Resource Value
Reasons for
Interest
(2012-13)
Iron Ore
Gold
Bauxite
Beyla, Guinea
Dinguriya, Guinea
Dubreka, Guinea
$350,000
$350,000
$400,000
300+ Million Tons
250,000 Oz
150+ Million Tons
$50~$100
Million
$20~$30
Million
$30~$60
Million
Fe grade 63% ~67%.
Hematite and Magnetite
ores.
Excellent logistic
Rail & port access via
Liberia
Artisan mining in
progress.
Excellent Alluvial Gold
over 2+ gm/ton.
Additional potential in
bedrock. Good Road
Access
Good quality bauxite with
some presence of white
bauxite.
Good logistics - rail &
road
Available Concessions in West Africa
Guinea, Mali, Liberia, Sierra Leone
Opportunity-1
Copper- Lead -Silver- Molybdenum (Cu -Pb- Ag –Mo)
Copper
Cu……..3%
Lead
Pb……….1%
Silver
Ag……….50 ppm
Molybdenum
Mo………20 ppm
Opportunity-2
Lead -Zinc - Copper (Cu - Pb -Zn) Association
Cu…………………..200 ppm
Pb………………….100 to 700 ppm
Zn………………….500 to 800 ppm
Opportunity-3
Cobalt -Nickel - Copper ( Ni- Cu - Co ) Association
Co…………………………..580ppm
Ni……………………………. 300 ppm
Cu…………………………….600 ppm
Opportunity-6
Nickel- Cobalt Association (Ni - Co)
Cobalt
Co ................... 0.03 to 1 %
Nickel
Ni ..................... 200 ppm
Total concession area : 50km ²
Opportunity-7
Nickel- Cobalt Association (Ni - Co)
Cobalt
Co ................... 1000 ppm
Total concession area : 25km ²
Total Concession area : 15 km²
Opportunity-8
Nickel- Cobalt Association (Ni - Co)
Cobalt
Co ................... 300 to 1000 ppm
Nickel
Ni ..................... 50 to 100 ppm
Opportunity-4
Copper - Zinc - Nickel (Cu - Zn - Ni) Association
Cu…………………………..1 %
Zn…………………………….1%
Ni…………………………….2000 ppm
Opportunity-9
Chrome - Nickel- Cobalt Association (Cr - Ni - Co)
Cobalt
Co ................... ?
Nickel
Ni ..................... ?
Crome
Cr ……………. ?
Opportunity-5
Gold (Au) – TWO Concessions
The gold on the Kankan and Kérouané sites in the heart of
Upper Guinea region with great extensions on both sides. The
content of the gold is from 0.5 to 2.5 gm /ton.
Opportunity-10
Iron Ore – Hematite – Close to port and infrastructure
Area 375km ², Reserve Estimate: 500 MT
Our Team
Shankar Devarajan
Innovative and entrepreneurial executive with 25+ years global experience in Strategy, Startups, Business Development,
and International Management. He possess significant startup and operational experience in the verticals such as,
Mining, Agribusiness, Aviation, Telecom & Technology Consulting. His educational background includes an MBA in
International Management from Temple University, USA.
Shankar is a global citizen who has lived, worked and studied in Canada, USA, India, Sri Lanka, France, Japan and a few
West African nations. This diverse and unique experience has enriched and shaped his global perspective and people
management skills.
In MINING vertical, he has initiated, ventured, explored, identified, negotiated & procured several mining concessions,
permits and operating assets in Russia, India, Guinea, Mali and Sierra Leone. Additionally he has established mining
operations, logistics and infrastructure in Guinea and India.
Rahul Joshi
PMP certified Project Manager with
Biz Dev and Startup experience. Just
completed his MBA from Rotman
School of Management, Toronto
D. P. Selvam
Over 40 years experience exploring
and mining Iron Ore, Bauxite,
Manganese, Coal, Lime, and Gold.
Ganapathy Ramachandran
Over 35 years experience exploring
and mining Gold, Bauxite, Beach
Minerals, Ceramic Minerals, and Coal.
Network
su mitra has developed and built relationship with several Mineral & Mining Institutes, Testing Laboratories, Mining
Agencies and Technical bodies in India and Africa. This provides us direct access to thousands of highly talented technical
and management professionals from the Mining Industry.
Organization & Operations Structure
su mitra Fund
LOCATIONS
Canada
India
Africa
Admin & Ops Support
Chief
Geologist
Biz Dev.
& Mktg.
Geologist
Sr. & Jr.
Biz Dev. & Mktg. Support
Mining Engineer
Analyst
Data Mgmt.
Documentation
Use of global manpower will provide for optimized
operations and cost efficiency saving of at least 35%
Project Lead
Project Country
Admin & Coordinator
SUPPORT
Partners & Providers
 Mapping
 Reconnaissance
 Drilling
 Lab & Testing
 Logistics
 Consulting
 Legal
 Accounting
 Technology
 Travel
Risk Management
Selection criteria & Investment Risk
Resource Selection Criteria
Benefits
Must have extensive research &
field work done in past
 Reduces False Positives
Must have detailed drilling data
and geological reports
 Reduces Economic Viability Risk
Must meet logistic parameters –
Roads, Ports, Rail, etc
 Very High Probability of Success
Focus and interest is on smaller
resources
Eg: 50~100 MT of Iron Ore
 Attracts larger pool of acquirers
 Falls below interest level of larger
companies
 Does not draw attention from vested
parties within Governments
su mitra will reduce overall investment risk through careful
selection of mineral resources
Fund structure
LP Structure
-
Limited Partnership arrangement
Drawdown commitment aggregating to $10 million
3 year duration
Capital used to procure and certify 5 concessions
Management contract for expenses only
Invested capital returned to investors before General Partner gets any carried
interest. 60-40 split thereafter
Other clauses under consideration
- Right of first refusal on exit
Limited Partnership arrangement will provide higher returns due to
efficient capital drawdown and favorable tax treatment
Fund Transparency
We keep you informed…
1. Monthly status report that will provide progress updates, financial
summary, field work visuals and laboratory testing results
2. Ad hoc report will be issued promptly to inform about Significant
developments
3. Quarterly commentary letter from the CEO that will include operational
and technical summaries
4. Annual audited financial statements
5. Schedule K-1 (Form 1065) in compliant with Canadian standards
Appendix-1: Detailed Process
Initiate Contact
in Country
Visit Country
Make Strategic
Agreements
Finalize Local
Structure &
Form Company
Meet locals who
worked on project
(Knowledge Transfer)
Send data to India
Office for Detailed
Evaluation
Ensure all legacy
issues are resolved
by Ministry
Apply for Resource
Permit OR Recon
Permit
Obtain N43101/JORC
Certification
Station
Jr. Geologist
from India
Collect old docs, reports,
maps from Ministry and
Mining Bureau
Marketing
Biz Dev.
Begins
Data sent to Canada,
US Expert Geologist
for Validation
Permits, Licenses, Permissions
Mining Plan, Business Plan
Off Takes, Debt Funding, etc.
Identify and build
relationship within
Mining Bureaucrats
INDIA TEAM ARRIVES
Prelim Validation, Form
Local Team, Site Visit
Complete
Comprehensive
Report
Marketing
Takes Over
Short
List
Opportunities
Data
Room
Open
Lab Report
Sample
validation
Bidding
Scan Archived
Documents
Dig & Find
Send to India
Office for
Evaluation
Preliminary
Report
GO/NO-GO
Arrange for
and Drill to
Validate
Negotiate
&
Close Deal
Appendix-2: su mitra Process
Setup & Identify
Acquire & Re-Prove
Showcase & Sell
 Initiate contact in project country
 Visit and finalize strategic
agreements, Local Structure &
Form Company
 Station Jr. Geologist from India
 Identify and build relationship
within Mining Bureaucrats
 Obtain Archived Documents
 Dig, unearth, crosscheck, and
evaluate data and docs
 Prelim Site Visit & Sample
Validation by Lab
 Send to India Office for
Evaluation
 Short List Opportunities
 Collect old docs, reports, maps from
Ministry and Mining Bureau
 Send data to India/Canada Office for
Detailed Evaluation
 Meet locals who worked on project
(Knowledge Transfer)
 Sample validation by Lab
 Resolve all legacy issues (Ministry)
 Acquire Resource or Recon Permit
 Commence Marketing & Biz Dev.
 Prelim site Validation - Local Team
 Preliminary Report GO/NO-GO
 Drill to Crosscheck & Validate
 Lab Report Sample validation
 Complete Comprehensive Report
 Data verified and validated by Canadian
(Expert) Geologist
 Final Report Submitted
 Obtain N43-101Certification
 Obtain all Permits, Licenses,
Permissions
 Obtain Environmental
Clearance
 Prepare Mining Plan, Business
Plan
 Off Takes Agreements
 Debt Funding commitments
 Commence Marketing to Sell
 Roadshow
 Data room open
 Bidding
 Negotiate and close deal
Appendix-3: The Re-Prove Process
1. All documents, reports, drill data and maps sent to India & Canada
office for detailed Evaluation.
2. Visit site, identify and meet locals who worked on the project
(Knowledge Transfer)
3. Get sample and validate them again
4. Resolve all legacy issues regarding the resource at all Ministries
5. Apply and obtain a Resource or Recon Permit for the selected site
6. Establish Camp, conduct selective drilling to Crosscheck & Validate
7. Get data verified and validated by Canadian (Expert) Geologist
8. Obtain N43-101/JORC Certification
Contact Information
sumitra
Shankar Devarajan
Cell: +1 416 419 3358
Email: sdevarajan@su-mitra.com
Rahul Joshi
Cell: +1 647 887 9365
Email: rjoshi@su-mitra.com
Local Footprints…Global Reach