Early-Stage Investment Readiness for Pre-Development Mining Projects

Building a New Frontier of African Mining Project Sponsors through Entrepreneurship and Action-Led Learning

Organized by 2019
Co-Hosted by African Catalyst log
 
 

Overview

We aim to bridge the Gap of lack of Bankable Deal Pipeline in Africa through an Early-Stage Investment Readiness Programme focussed on Pre-Development Mining Projects.
  1. A low-cost Open Learning Programme for building capacity of locally based project sponsors of on Pre-Development Mining Projects in Africa.
  2. To provide substantial infrastructure expertise for on Pre-Development Mining Projects Sponsors to understand project preparation, financial structuring and have a workable development plan for the project sponsor to be taken seriously within the Early Stage  investment community.
  3. To use the programme as a basis of selection for early-stage investors to single out projects that have traction, show bankability and a sponsor team that can raise pre-development capital i.e Project Preparation Financing for Pre-Development Mining projects 
BR classroom scaled

Programme Structure 

The Programme is an 8-Week Online Programme, that will take place 6-8 hours weekly on the Learning Management System (LMS), Virtual Class sessions, WhatsApp Group sessions, and In-person sessions, using innovative classroom management tools. Lectures will be delivered in modules that afford participants the flexibility to run their businesses, while participating in the programme. As the classes progress, participants will develop their growth plans and make immediate improvements in their respective projects.

Application Process

Stage I: Interested applicants can apply using the Apply Button (blelow)

Stage II: Following a review of all received applications, candidates will be shortlisted for a short online meeting after which suceessfull applicants will be selected to pay the application fee of $500 ( Five Hundred Dollars)

Why Pre-Development Mining Projects?

mining life cycle 3

The Pre-Development stage in a mining project is considered the most risky because it involves the earliest phases of exploration, where there is the highest uncertainty about the potential value of the resource being sought. Several factors contribute to this risk, At this stage, there is little to no certainty that a mineral deposit even exists. Companies rely on preliminary geophysical, geochemical, and geological surveys, but actual mineral discoveries are rare, especially economically viable ones.

The chance of finding a significant deposit is low, making this stage speculative. Even if signs of minerals are found, it’s uncertain whether the deposit is large or rich enough to justify extraction.

Since this stage is highly speculative, raising capital can be difficult. Investors may be hesitant to invest significant sums of money with no guarantee of a discovery. Junior exploration companies, which often operate at this stage, might find it challenging to secure funding, and if they do, the terms may be less favorable.

Because of these factors, the Pre-Develoment stage in mining projects involves the greatest level of risk, making it a critical point where many projects fail before they even get to the discovery or development stages. The Early-Stage Investment Readiness for Large Scale Pre-Develoment Mining Projects was created to enlighten and create the right knowledge for first time project owners

Pre-Acceleration Programme Outline

The goal of this programme is to equip infrapreneurs with an overview of Project Finance by taking them through all the stages of a Project Development Lifecycle to be able to develop and apply the skills-set to achieve investment-ready projects in Pre-Development Mining projects. The course provides important experience and practical examples in the following areas:

The Early-Stage Investment Readiness for Large Scale Pre-Develoment  Mining Projects focuses on the following stage 

1. Concept Stage
This stage carries the most risk which accounts for its low value. In the beginning, there is little knowledge of what actually lies beneath the Earth’s surface. At this stage, geologists are putting to the test a theory about where metal deposits are. They will survey the land using geochemical and sampling techniques to improve the confidence of this theory. Once this is complete, they can move onto more extensive exploration
2. Pre-Discovery Stage 
There is still plenty of risk, but this is where speculation hype begins. As the drill bit meets the ground, mineral exploration geologists develop their knowledge of what lies beneath the Earth’s crust to assess mineral potential. Mineral exploration involves retrieving a cross-section (drill core) of the crust, and then analyzing it for mineral content. A drill core containing sufficient amounts of metals can encourage further exploration, which may lead to the discovery of a mineable deposit.
3. Discovery Stage 
Discovery is the reward stage for early speculators. Exploration has revealed that there is a significant amount of material to be mined, and it warrants further study to prove that mining would be feasible. Most speculators exit here, as the next stage creates a new set of risks, such as profitability, construction, and financing.
4. Pre-Development Stage
This is an important milestone for a mineral discovery. Many Feasibility Studies are conducted during this stage may demonstrate the deposit’s potential to become a profitable mine. Institutional and strategic investors can then use these studies to evaluate whether they want to advance this project. If a company can secure funding for development, investors can see the potential of revenue from mining. However, risks still persist in the form of construction, budget, and timelines.
Value Proposition of the Early Stage Investment Readiness Programme

SPECIALISED

We are a highly specialized with specific focus on Large Infrastructure & Industrial Projects in Africa

EXPERIENCED

We have been active on the market since 2010 with our the team of more than 40+ years of experience

NETWORK

Our Network is capable of offering a complete and customized service to client anywhere in Africa 

FLEXIBILITY

We offer a flexible approach that adapts each project’s dynamics and risks when advising our clients
Expression of Interest
Do you have project that you believe can benefit from this Programme. Please fill the form below

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