Colorado Gold Mining & Milling Operation
Summary Description
This company owns several of the richest mines in Colorado containing gold, silver, copper, zinc, iron and lead. The metals contained in the company’s mines and existing ore piles are used in virtually all of the world’s electronic devices from cell phones and computers to automobile electronics.
The owner is currently seeking a buyer for the entire business, or a portion thereof, to help complete construction of a “green” custom mill at the site of a rich historic mine. The closed loop high-efficiency custom mill will concentrate and separate over 90% of the precious metals from its processed ore. Leftover mine tailings will be clean and have the consistency of sand.
The owner’s business plan estimates the custom mill will be capable of producing $160mm+ per year EBITDA when in full operation. It will be the only mill in Colorado capable of processing ore from other mines in the area. There are enough client ore commitments today to run the custom mill for the next 25 years without tapping the company’s rich underground mine claims. It will take roughly 9-12 months to start production at the custom mill once funding is secured.
The historic mine owned by the company at the mill site has not been operated on an industrial level since the 1940s. Back then gold sold for $20 per ounce and its silver was largely ignored. The mine is estimated to have inferred reserves of 1.5mm oz of gold and known veins of silver up to 10 feet wide. The company’s earnings estimates become staggering once the underground resources of its mine begin to run through the mill.
Important Disclaimer: Crestone Business Group is not a licensed Security Dealer and is not involved in buying, selling or trading of securities. If a buyer wishes to purchase a portion of this company, a third party attorney or licensed security dealer will be enlisted to consummate the stock sale.
General Information
Year Established: Mines dating to 1800s, company incorporated in 2008
Employees: 7 expanding up to over 100 when in full operation
Facilities: Several historical buildings to be renovated to meet current safety and operational standards
Financials
Sale Price: $52M – Contact Broker for other purchase options
Purchase Includes: Existing mines, permits, real property, water rights to Clear Creek, buildings and equipment
Estimated Revenue Potential: Up to $189M per year (processing 700T per day of low grade ore from the mine on site)
Estimated Cash Flow Potential: Up to $25M per year (processing 700T per day of low grade ore from other mines)
Market Outlook
Competition: There are several other mining companies that operate in Colorado. None are permitted to run a custom mill that can serve other mining operators.
Growth and Expansion: Dump ores will eventually be replaced with high grade ore produced from underground mines. Once high-grade underground ore has completely replaced dump ore in the mill, net cash flow is expected to increase considerably.
About the Sale
Support/Training: Seller has a management team ready to hire and willing to stay on and work for new owner for a salary
Reason for Sale: Seller has invested a considerable amount of capital but is short of what is necessary to finish the remaining permitting, construction and reconditioning projects to restart production.
