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ACARI IRON ORE CONCESSION
ECONOMIC PROPOSAL FOR THE
EXPLORATION AND EXPLOITATION
2011
ACARI
CONCESSION
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ECONOMIC PROPOSAL FOR THE EXPLORATION AND EXPLOITATION
OF ACARI CONCESSION
WE ARE THE OWNER OF THE MINING RIGHT IN ACARI, FOR WHICH PRESENT THE FOLLOWING
ECONOMICAL PROPOSAL:
GENERAL INFORMATION OF ACARI ANNEX N°1
STAGE N°1 – PRE-EXPLORATORY OPERATION ANNEX N°2
STAGE N°2- EXPLORATION ANNEX N°3
STAGE N°3- EXPLOITATION IRON ORES AND SPONGE IRON ANNEX N°4
TERMS AND CONTRACTUAL CONDITIONS ANNEX N°5
ADDITIONAL INFORMATION ANNEX N°6
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ACARIPROJECT/GENERAL INFORMATION ANNEX N°1
NAME OF THE PROJECT : ACARI
SIZE OF PROPERTY : 800 HAS.
LOCATION : BELLA UNION, CARAVELI, AREQUIPA-
PERU.
DISTANCE FROM PACIFIC OCEAN : 29 KM
DISTANCE TO SAN JUAN PORT : 60 KM
MAIN OUTCROPS OF IRON ORE : THE VEIN°4 HAS AN OUTCROP OF
1800 METERS OF LENGTH BY 4.50
METERS OF WIDTH (APPROXIMATELY).
QUALITY OF IRON ORE : MIXTURE OF HEMATITE - MAGNETITE
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ANNEX N°1
GEOPHYSICAL STUDIES DONE : STUDY OF ENGINEER GEOLOGIST,
WHO PRESENTS THE DIAMOND
DRILLINGS AND INITIAL RESERVES
OF 1'382.320 METRIC TONS
(DRILLED BY PREVIOUS COMPANY)
AND HIGHLY PROBABLE OF
1’556,840 METRIC TONS OF IRON
ORE MAGNETITE-HEMATITE OF HIGH
CONCENTRATION (TOTAL 3 MILLION
TONS)
GEOPHYSICS STUDIES DONE : BY QUANTEC GEOSCIENCE OF PERU
(CANADIAN), STUDY PRESENTS 02
MAGNETIC BODIES OF 136 MILLION
CUBIC METERS (M3).
INFERRED RESOURCES BY GEOPHYSICS : OVER 500 MILLIONS TONS IRON ORE
(OBTAINED: 136M. M3 X 3.7 TONS/M3)
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ANNEX N°1
CHEMICAL ANALYSIS : Fe AL2O3 MgO CaO
62.3% 1.4% 0.7% 0.62%
Cu K NA S
0.01% 0.08% 0.01% 0.11%
TYPE OF IRON ORE : HEMATITE (Fe2O3) = 68%
MAGNETITE (Fe3O4) = 32%
MAGNETIC CONCENTRATION : FOR LUMPS ORES
FORECASTING Fe CONTENT = 63-64%
FOR FINES ORES
Fe CONTENT = 64-65%
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CANADIAN GEOPHYSICAL STUDY PRESENTS 02 MAGNETIC BODIES OF
136 MILLION CUBIC METERS (M3), FOR TOTAL 500 MILLION TONS.
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TERRESTRIAL MAGNETOMETRY BY CANADIAN COMPANY
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ACARI PROJECT – PRE-EXPLORATORY OPERATION ANNEX N°2
ANTECEDENTS
THIS DEPOSIT WAS ONE OF PREVIOUS MINES, WHICH WAS OPERATED UNTIL 1969 WITH
FINANCING OF “AMERICAN OVERSEAS FINANCE OF NEW YORK” AND MINING BANK OF PERU
(BANCO MINERO DEL PERU), HAVING EXPORTED TO JAPAN OVER 8 MILLIONS TONS OF HIGH
CONCENTRATION IRON ORE, DURING 6 YEARS OF OPERATIONS.
OBJECTIVE
TO CARRY OUT A PRELIMINARY VERIFICATION OF THE POTENTIAL IRON ORE RESOURCES IN
ACARI PROJECT TO PROVIDE SECURITY TO THE INVESTOR ABOUT THE IRON ORE VOLUME AND
IRON ORE QUALITY, IN ACCORDING TO THE FIRST DRILLING RESULTS, THE INVESTOR GROUP CAN
DECIDE TO CONTINUE OR RETIRE TO THE CONTRACT.
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PRE-EXPLORATORY OPERATION STUDIES ANNEX N°2
THE STUDIES OF THIS STAGE WILL BE AS FOLLOWS:
1. TERRESTRIAL GEOPHYSICS (MAGNETOMETRIC AND GRAVIMETRY), TO VERIFY THE EXISTENCE
OF MAGNETIC BODIES THAT CAN APPEAR UNDER THE ANOMALIES DETECTED IN THE STUDY
OF CANADIAN COMPANY QUANTEC GEOSCIENCE OF PERU, IT MEANS FROM 600 METERS
UNDER OF THE ACARI SURFACE.
2. ARE REQUIRED 2 DIAMOND DRILLS UNDER VEIN 4 WITH A DISTANCE OF 300 METERS
BETWEEN EACH DRILL AND A DEPTH OF 500 METERS IF THE CONTINUATION OF THE
MINERALIZATION ALLOWS IT.
3. SHOULD BE DRILLED OTHER DIAMOND DRILLS UNTIL VERIFYING THE CENTER OF THE
DETECTED MAGNETIC BODIES IN THE STUDY OF QUANTEC GEOSCIENCE OF PERU.
THE DRILLINGS WILL ALLOW THE POSSIBLE DETECTION OF OTHER NONFERROUS MINERALS
WITH COMMERCIAL VALUE AND ALLOW ALSO THAT THE INVESTOR GROUP DECIDES TO CONTINUE
OR TO SUSPEND THE DIAMOND DRILLS ACCORDING WITH THE INITIAL OBTAINED RESULTS
ABOUT THE QUALITY OF THE IRON ORE, IN OTHER MINERALS AND THEIR CONSEQUENT
COMMERCIAL VALUES.
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PRE-EXPLORATORY OPERATION BUDGET (STAGE N°1) ANNEX N°2
1.1.1. GEOPHYSICS
TERRESTRIAL MAGNETOMETRIC STUDY LINE OF 80 KM READING WITH A MINIMUM OF 10
METERS EACH AND 30 POINTS MINIMUM OF GRAVIMETRY FOR AN EXTENSION OF 700
HECTARES AND UNDER OF 600 METERS FROM THE SURFACE (WEST SIDE).
REFERENCIAL BUDGET : US$ 50,000.00
REFERENCIAL TIME : 30-45 DAYS.
2.2.2. DIAMOND DRILL
INCLUDING PERMITS, ENVIRONMENTAL IMPACT STATEMENT (EIS), GOVERNMENT
PROCEDURES, CONSTRUCTION OF PLATFORMS AND 2000 METERS OF DIAMOND DRILLS,
MINIMUM FOR AN EXTENSION OF 800 HECTARES.
REFERENCIAL BUDGET : US$ 550,000.00
REFERENCIAL TIME : 180 DAYS.
TOTAL ESTIMATED INVESTMENT BUDGET : US$ 600,000.00
REFERENCIAL TIME : 4 MONTHS
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ACARI PROJECT/EXPLORATION (STAGE N°2) ANNEX N°3
INCLUDES THE DEVELOPMENT OF THE ENVIRONMENTAL IMPACT STUDY (EIS) AND
UPGRADES NECESSARY GOVERNMENTAL, GOVERNMENT PERMISSION FOR
CONSTRUCTION OF 20 INITIAL DRILLING PLATFORMS (CATEGORY1) AND UPGRADES
REQUIRED.
THE GOAL IS TO DRILL ALL THE MINERALIZED ZONES INDICATED BY GEOPHYSICAL
STUDIES UNTIL A MAXIMUM PERMISSIBLE MINERALIZED DEPTH IN ORDER TO GET AN
INDICATED/MEASURED JORC RESERVES IN ALL DEPOSIT.
TO ACHIEVE OBJECTIVES STATED PROVIDED THE FOLLOWING PARAMETERS, LIMITS:
1. NUMBER OF HOLES SHOULD BE NO LESS THAN 75 DIAMOND DRILLS.
2. THE DISTANCE BETWEEN EACH DRILL TO BE NO LESS THAN 200 METERS.
3. DEPTH OF EACH DRILL TO BE NO LESS THAN 300 METERS INSIDE OF MINERALIZED
ZONE
4. THE PROGRAM OF DIAMOND MUST BE AT LEAST OF 22.000 LINEAR METERS INSIDE
OF THE MINERALIZED ROCK.
TOTAL ESTIMATED INVESTMENT DRILLING BUDGET : US$ 5 MILLIONS
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ACARI PROJECT/EXPLOITATION: 2,000,000 MT/MONTH ANNEX N°4
STAGE N°3 (ALSO NEEDED TO HAVE MIXED PRODUCTION WITH SPONGE IRON 5MTPA)
THE INVESTMENT BUDGET FOR PRODUCING 24MTPA OF IRON ORE, IT IS ESTIMATED AS
FOLLOWS:
- MINE AND INFRASTRUCTURE $166’000,000.-
- PROCESSING PLANT $ 190’000,000.-
- CONVEYOR BELT (40 KMS) $200’000,000.-
- PORT AND INFRASTRUCTURE $230’000,000.-
- SERVICES $ 24’000,000.-
- CONTINGENCY $ 90’000,000 .-
ESTIMATE SUB-TOTAL $900’000.000.-
THE OPERATIVE CAPITAL FOR 3 MONTHS IS ESTIMATED IN US$ 267’000,000.-
TOTAL INVESTMENT : $ 1,167’000,000.00 ($ 1,17 BILLION)
OPERATING BUDGET (EXPLOITATION, CRUSHING/CLASSIFICATION, MAGNETIC
CONCENTRATION, TRANSPORTATION TO PORT AND SHIPPING EXPENSES), IS ESTIMATED AT
U.S.$ 44.50 X TM.
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ANNEX N°4
A FORE CASTING OF INCOME / EXPENSES FOR THE FIRST YEAR IS ESTIMATED AS FOLLOWS:
INCOME/FIRST YEAR
24’000,000 MT X FOB$ 120.- X MT $2,880’000,000.-
EXPENSES/FIRST YEAR
24’000,000 TM X $44.50 X TM $1,068’000,000.-
GROSS PROFIT / FIRST YEAR: $ 1,812'000, 000.-
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TERMS AND CONTRACTUAL CONDITIONS ANNEX N°5
WE PROPOSES AN ASSOCIATION TO SELL 60% OF ACARI MINING RIGHTS TO THE INVESTOR
GROUP, WHICH INCLUDES THE PAYMENT TO THE MINING GROUP FOR DOWN PAYMENT AND
FOR THE PROBABLE/PROVED RESERVES IN 3 MILLIONS METRIC TONS. THE ACCOMPLISHMENT
OF THE PRE-EXPLORATORY OPERATION, FINAL EXPLORATION AND THE PAYMENTS FOR ALL
THE RESOURCES AND MINERAL RESERVES THAT CAN BE DETECTED IN THE INITIAL AND FINAL
EXPLORATION.
THE INVESTMENT BUDGET FOR THE PRE-EXPLORATORY OPERATION IS ESTIMATED IN $
600,000 AND ITS SCOPES AND DETAILS CAN BE FOUND IN THE ANNEX N°2.
THIS STAGE WILL DEFINE A PRELIMINARY QUANTIFICATION OF IRON ORE RESOURCES AND
OTHER SUBSTANCES’ IN THE ACARI PROJECT. TO ACHIEVE A DIAMOND DRILL MESH SCHEDULE
TO DEVELOP STAGE 2 (ANNEX N°3) IN THE FINAL EXPLORATION.
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ANNEX N°5
THE EXPLORATION OF THE DEPOSIT HAS THE OBJECTIVE TO EVALUATE INTEGRALLY THE IRON
ORE DEPOSIT UNTIL 2000 METERS UNDER NEATH OF THE ACARI SURFACE. IF THE STUDIES
SHOW MINERALIZATION WITH ACCEPTABLE COMMERCIAL VALUES OF IRON Fe AND/OR OTHER
SUBSTANCES IN ORDER TO DEFINE GRADUALLY THE INDICATED RESERVES FOR ESTABLISHING
A PAYMENTS CHRONOGRAM TO THE MINING GROUP, ACCORDING WITH THE ADVANCE AND
VALUATION OF THE QUANTIFIED RESOURCES AND RESERVES.
WE PROPOSE A FIDUCIARY AGREEMENT (ESCROW) WITH AN INTERNATIONAL BANK, ACCEPTED
BY THE INVESTOR GROUP. THE MINING GROUP SHOULD TRANSFER TO THE FIDUCIARY BANK
THE 60% OF ACARI MINING RIGHTS AND ALSO THE INVESTOR GROUP SHOULD COMPLY
STRICTLY WITH THE INVESTMENT COMMITMENTS AND FIRST DISBURSEMENTS FOR THE
MINING GROUP. IN ORDER WHEN THE INVESTOR GROUP FINISHES FULFILLING ALL
COMMITMENTS, THE FIDUCIARY BANK SHOULD TRANSFER THE 60% OF THE MINING PROPERTY
OF ACARI TO THE INVESTOR GROUP.
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ANNEX N°5
INTEGRAL STAGE N°2/EXPLORATION (ANNEX N°3), WILL HAVE TO BE FULFILLED BY THE
INVESTOR IN 5 SUB-STAGES, WHICH WILL BE DEFINED IN A CHRONOGRAM OF EXPLORATION.
ONCE THE EXPLORATORY PRE-OPERATION IS CONCLUDED IN EACH OF THE 05 SUB-STAGES,
THE GROUP INVESTOR WILL HAVE TO PUT INTO EFFECT THE PAYMENTS TO THE MINING GROUP,
ACCORDING TO THE VALUATION OF THE RESERVES OPEN PIES, AT THE RATE OF A VALUE BY
METRIC TON, ACCORDING TO THE QUALITY THAT CONTAINS.
FOR THE EFFECTS OF VALUATION OF THE RESERVES DETECTED IN VEIN 4 IN STAGE PRE-
EXPLORATORY, OUTSIDE THE VOLUME OF 3 MILLION METRIC TON PROBED/PROBABLE, THE
VALUE BY METRIC TON IS $2,50 USD, OF SUCH RESERVES PROJECTED IN THE 1.800 METERS
OF LENGTH, BY ALL THE DEPTH THAT CONTAINS.
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ANNEX N°5
FOR THE EFFECTS OF VALUATION BY EACH METRIC TON OF INDICATED AND DISCOVERED
RESERVES IN THE STUDIES OF EXPLORATION OF THE STAGEN°2, DETERMINES IT HAS A VALUE
EQUIVALENT TO THE 0,4% OF THE VALUE IS DETERMINED AVERAGE OF THE IRON ORE SPOT-
FINES F.O.B (INDIA, AUSTRALIA AND BRAZIL), IN AGREEMENT WITH SPECIALIZED PUBLICATION
CRU-MONITOR IMMEDIATELY PREVIOUS TO THE DATE OF VALUATION, WHENEVER THE IRON
MINERAL OF PROJECT ACARI HAS A CONTENT BETWEEN 50-55% Fe (TOTAL IRON) AND OF
0,25% OF THE SAME AVERAGE, BY THE RESOURCES BETWEEN 40-50% PROPORTIONAL Fe
(IRON) AND VALUES FOR THE ENDS.
IT IS PROPOSED THE SIGNATURE OF THE FIDUCIARY CONTRACT TO THE INVESTOR GROUP
SHOULD DEPOSIT TO THE ESCROW BANK THE SUM CORRESPONDING TO THE 3 MILLION
METRIC TON OF EXISTING RESERVES PROVED/PROBABLE PLUS DOWN PAYMENT. ALSO, IF
THERE WILL BE OTHER MINERAL SUBSTANCES IN THE RESOURCES TO DETERMINE IN PROJECT
ACARI LIKE GOLD, SILVER, RECEIVES OR ANOTHER MINERAL OR METAL WITH COMMERCIAL
VALUE, SHOULD BE PAID BY THE INVESTOR GROUP TO THE MINING GROUP IN THE SAME
PROPORTIONAL PROPORTIONS AND/OR MEASURES, THAT THE APPLIED ONES IN THE IRON
ORE.
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ANNEX N°5
IT IS SETTLED DOWN THAT THE RESERVES DETECTED IN VEIN 4, OUTSIDE THE 3 PROBABLE
PROVEN MILLION METRIC TONS, SHOULD BE PAID TO THE MINING GROUP, AT THE END OF THE
PRE-EXPLORATORY OPERATION.
IT IS SETTLED DOWN THAT THE PAYMENTS THAT INVESTOR GROUP SHOULD CARRY OUT TO THE
MINING GROUP FOR THE VALUATION OF INDICATED RESERVES WILL HAVE TO CORRESPOND TO
60% OF SUCH VALUES, CONSIDERING THE SAME PROPORTION OF SHARES THAT SHOULD
RECEIVE THE INVESTOR GROUP. IF THERE WILL BE OTHER MINERAL SUBSTANCES HAVE IN THE
RESOURCES TO DETERMINE IN PROJECT ACARI LIKE GOLD, SILVER, RECEIVES OR ANOTHER
MINERAL OR METAL WITH COMMERCIAL VALUE, SHOULD BE PAID BY THE INVESTOR GROUP TO
THE MINING GROUP IN THE SAME PROPORTIONS, THAT THE APPLIED ONES IN THE IRON
MINERAL.
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ANNEX N°5
IT IS CONSIDERED THAT THE VALUATION OF MINERALS AND Fe THAT ARE DISCOVERED DURING
RESERVATIONS EXPLORATION STUDIES MUST BE ADJUSTED TO SECURITIES OF THE MONTH
PRIOR TO EACH SUB-STAGE INDICATED, AS WELL AS THE MINING GROUP IN EACH SUB-STAGE
INDICATED MAY CHOOSE THE CURRENCY OR VALUE OF THE FIRST DISBURSEMENT PHYSICAL
GOLD, ACCORDING TO THE QUOTE OF THE MONTH PRIOR TO EACH RESPECTIVE RECOVERY AND
LIQUIDATION.
NOTED THAT ALL THE TERMS AND CONDITIONS PRESENTED IN THIS CHAPTER SHALL BE
IMPROVED, EXPANDED OR CORRECTED IN TALKS TO DEFINE DESERVING VERY CLEARLY THE
TRUST AGREEMENT BETWEEN THE PARTIES.
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PROCEDURE AND DETAILED CONDITIONS FOR THIS JOINT VENTURE
BUSINESS PROPOSED
1. OBJECT OF THE ASSOCIATION:
(A) INVESTMENT IN EXPLORATION UNTIL OBTAIN A MINIMUM RESERVE OF 30 MILLION TONS OF
IRON ORES, AND TO INVEST TO EXPLOIT AND EXPORT 10 MILLION TONS OF Fe IRON ORES PER
YEAR, WITH LATER AND SIMULTANEOUS MANUFACTURE OF 5 MILLION TONS OF SPONGE IRON
(TO DECREASE THE FREIGHT COST TO ASIA, IT IS PREFERRED TO MAKE SPONGE IRON).
(B) TO CONTINUE THE EXPLORATION, WITH THE SAME TERMS OF POINT (A) UNTIL ACHIEVING
RESERVES OF 300 MILLIONS TONS.
2. TYPE OF CONTRACT OF ASSOCIATION:
JOINT VENTURE, WITH SALE OF SHARES (STOCKS) THROUGH FIDUCIARY CONTRACT (ESCROW).
3. SHARES SALE:
PROPOSED THE SALE OF 60% OF SHARES AND RIGHTS OF THE CONCESSIONS TO THE
INVESTOR GROUP.
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4. SALE PRICE:
THE SALE PRICE OF 60% OF THE SHARES AND RIGHTS OF THE CONCESSION TO THE INVESTOR
GROUP WILL BE AS FOLLOWS:
(A) FULFILLMENT OF INVESTMENT COMMITMENTS OF EXPLORATION AND EXPLOITATION,
POINT (1).
(B) “CASH PAYMENTS” AGAINST THE ACCOUNT OF THE FUTURE PROFITS OF MINING GROUP.
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5. VALUE OF SALE BY METRIC TON OF IRON ORE IN SITU:
FOR THE EFFECTS OF VALUATION PER EACH METRIC TON OF INDICATED RESERVES AND
RESOURCES DETERMINED IN THE EXPLORATION STUDIES, THIS SETTLES DOWN A VALUE
AVERAGE OF THE IRON ORE SPOT-FINES F.O.B (INDIA, AUSTRALIA AND BRAZIL), ACCORDING
WITH SPECIALIZED PUBLICATION CRU-MONITOR IMMEDIATELY PREVIOUS TO THE DATE OF
VALUATION.
(A) FOR MEASURED RESERVES THE VALUE. WITH 60% Fe TOTAL IRON, WILL BE OF 0.60% PER
METRIC TON IN SITU.
(B) FOR INDICATED RESERVES THE VALUE WITH 60% Fe TOTAL IRON, WILL BE OF 0.40% PER
METRIC TON IN SITU.
(C) FOR INFERRED RESERVES, THE VALUE WITH 60% Fe TOTAL IRON WILL BE OF 0.30% PER
METRIC TON IN SITU.
(D) IF THE AVERAGE OF LAWS OF Fe TOTAL IRON IN THE DRILLS WERE INFERIOR VALUES
AVERAGE TO 60% Fe TOTAL IRON, THE FIXED PRICES WILL BE REDUCED PROPORTIONALLY
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AND IF WERE OBTAINED HIGHER VALUES AVERAGE TO 60% Fe TOTAL IRON, THE FIXED PRICES
WILL BE INCREASED PROPORTIONALLY.
(E) WITH RELATIONSHIP TO OTHER SUBSTANCES THAT CAN BE DETECTED IN THE
EXPLORATION, THE VALUES OF SALE OF MINERALS, THEY WILL BE APPLIED IN SIMILAR AND
PROPORTIONAL FORM TO THE ONE USED IN THE VALUES OF SALE FOR METRIC TON OF
FERROUS ORES.
(F) THE VALUES OF SALE OF THE FERROUS AND NOT FERROUS SUBSTANCES WILL BE
LIQUIDATED, WITH REFERENCE TO THE PRICE IN THE INTERNATIONAL MARKET OF THE
PREVIOUS MONTH.
(G) THE INVESTOR GROUP WILL ONLY PAY 60% OF THE TOTAL APPRAISEMENT OF MEASURED
RESERVES, INDICATED AND INFERRED THAT IS POSSIBLE TO DETERMINE IN THE STAGE OF
EXPLORATION.
6. COMMITMENTS OF THE INITIAL INVESTMENT (STAGE 1):
IT IS ESTABLISHED THAT IN THIS STAGE, INVESTMENTS WILL BE DUE TO CARRY OUT IN A
PROGRAM STEP BY STEP, IN ORDER TO REDUCE TO THE MINIMUM, ANY TYPE OF POSSIBLE
INITIAL RISK, UNTIL OBTAINING A CLEAR EVIDENCE OF THE POSSIBILITIES TO CUBE (VALUE)
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ACCEPTABLE VOLUMES OF MINERAL OF IRON (TOTAL Fe), AND OTHER MINERALS THAT CAN
EXIST IN THE ALL AREA OF CONCESSIONS AND TO VERIFY THE CONCENTRATION AND QUALITY
OF THE MINERAL.
THE INVESTMENT COMMITMENTS SHALL BE THE FOLLOWING:
(A) GEOPHYSICAL
FOR THE VERIFICATION AND THE INITIAL CONFIRMATION OF THE ABNORMALITIES AND
MAGNETIC BODIES, THEY WILL ONLY BE REQUIRED 200 LINES OF 1 KM DE TERRESTRIAL
MAGNETOMETRY WITH OVER HOUSER EQUIPMENTS OR SIMILAR AND 50 POINTS OF
GRAVIMETRY.
(B) DIAMOND DRILLS
IT WILL ONLY BE REQUIRED TWO DRILLS OF 150 METERS DEPTH EACH ONE, TO FINISH THE
VERIFYING OF QUALITY OF THE MINERAL IN THE MAIN MAGNETIC BODIES.
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(C) OPERATIVE AND ADMINISTRATIVE EXPENSES
INCLUDING COMMUNITARIAN AGREEMENTS (DIA), AND OTHERS.
7. FULFILLMENT OF COMMITMENTS INVESTMENT (STAGE 2):
THE INTEGRAL EXPLORATION, EXPLORATORY COMMITMENTS, WILL BE BASED ON AN
EXPLORATION PROGRAM TO BE DEFINED THAT INCLUDES THE FOLLOWING:
(A) TOTAL AND COMPLETE GEOPHYSICS.
(B) DIAMOND DRILLS
(C) OPERATIVE AND ADMINISTRATIVE EXPENSES INCLUDING THE MAINTENANCE IN
COMMUNITARIAN AGREEMENTS AND DEVELOPMENT OF ANY STUDY OR EXTENSION THAT IS
REQUIRED.
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8. LIMITS AND CONDITIONS OF EXPLORATION:
(A) WHOLE FERROUS EXPLORATION STAGE YOU WILL HAVE A MAXIMUM DURATION OF 18
MONTHS AND THE EXPLORATION OF OTHER MINERAL SUBSTANCES, WILL BEGIN IMMEDIATELY,
AND SHOULD HAVE A MAXIMUM DURATION OF OTHER 18 MONTHS FROM THE DATE OF
DETECTION OR DISCOVERY.
(B) THE EXPLORATION WILL COMPREHEND, TO ALL MINERAL FERROUS RESOURCE THAT WILL
BE, AT LESSER THAN 500 METERS OF AVERAGE OF DEPTH OF EACH CONCESSION AND FOR THE
NON FERROUS RESOURCES THE EXPLORATION WILL BE MADE IN ALL ITS DEPTH.
(C) ONCE ENDED AND VERIFIED THE GEOPHYSICAL STUDY WITH THE COMPLETE
MAGNETOMETRY AND GRAVIMETRY, WITH DEVELOPMENT OF MAGNETIC BODIES IN 3D. THE
MINING GROUP WILL PROPOSE TO THE INVESTOR GROUP A PLAN AND TIMELINE OF
DIAMANTINE DRILLINGS, WHICH WILL FIX A MINIMUM OF LINEAL METERS OF DIAMANTINE
DRILLINGS TO DEVELOP, AND THE TERM OF DURATION.
(D) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC, AS PRIORITY FOR
EACH 30 MILLION METRIC TONS OF MEASURED RESERVES.
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(E) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC, AS PRIORITY FOR
THE REMAINING 50% OF RESERVES, AS INDICATED RESERVES.
(F) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC OF THE OTHER 50%
OF REMAINING RESERVES, AS INFERRED RESERVES.
(G) IN CASE THEY ARE DISCOVERED OTHER MINERAL SUBSTANCES WITH COMMERCIAL
VALUES AS Au, Ag, Cu, Pb, Zn AND ANY OTHER MINERAL, THE INVESTOR GROUP WILL PUT
UNDER AN OBLIGATION TO SCAN INTEGRAL AND COMPLETELY SUCH RESOURCES AT ONE TIME
NOT GREATER THAN 18 MONTHS, FROM THE DATE OF THE DISCOVERY.
9. INVESTMENT COMMITMENT EXPLOITATION (STAGE 3):
THE INVESTMENT COMMITMENT EXPLOITATION WILL BE AS FOLLOW:
(A) FOR THE FIRST MEASURED RESERVES OF 30 MILLION METRIC TONS, THE INVESTOR
GROUP WILL INVEST IN A PROJECT OF EXPLOITATION AND EXPORT OF MINERAL OF IRON WITH
A MINIMUM CAPACITY OF 10 MILLIONS METRIC TONS PER YEAR AND LIKEWISE IN A PLANT OF
SPONGE IRON OF CAPACITY FROM 5 MILLIONS METRIC TONS PER YEAR.
(B) ALTHOUGH, THE EXPLORATIONS WILL CONTINUE FOR EACH NEW MEASURED RESERVE OF
30 MILLION METRIC TONS OF IRON MINERAL, THE INVESTOR GROUP WILL MAKE THE
ESTABLISHED INVESTMENTS IN THE POINT (A).
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(C) ALTHOUGH THE INVESTOR GROUP WILL WANT TO CHANGE THE INVESTMENT OF
EXPLOITATION AND EXPORT OF IRON ORES, FOR A TOTAL PRODUCTION OF SPONGE IRON, THE
MINIMUM CAPACITY OF PRODUCTION WILL BE 50% OF THE SUITABLE ONE IRON ORES, THAT IS
TO SAY 5 MILLION METRIC TONS PER YEAR.
(D) THE INVESTOR GROUP WILL INVEST 100% IN THE INDICATED PROJECTS IN THE POINT (C),
FOR THE WHICH THE 40% OF THE SHARES (STOCKS) OF THE MINING GROUP WILL BE GOLDEN
SHARES (STOCKS), WITHOUT ANY DILUTION, AND WITHOUT DECREASING.
(E) THE TOTAL AMOUNT OF THE VALUE, OF EACH 30 MILLION METRIC TONS OF MEASURED
RESERVES, PLUS THE VALUES OF INDICATED RESERVES AND INFERRED INDICATED IN THE
POINT (5), WILL BE PAID BY THE INVESTOR GROUP TO THE MINING GROUP, IN A TIMELINE TO
BE DEFINED IN THE CONTRACTUAL NEGOTIATIONS.
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10. TIMELINE OF CASH PAYMENTS TO MINING GROUP:
THE TIMELINE OF PAYMENTS WILL BE AS FOLLOW:
(A) DOWN PAYMENT AT THE MOMENT OF SIGNATURE OF CONTRACT
NOTE: THIS DOWN PAYMENT YOU WILL MAKE TO THE FIDUCIARY BANK (ESCROW), AGAINST
THE MINING GROUP GIVE TO FIDUCIARY BANK THE 60% OF CONCESSION RIGHTS OWNERSHIP,
TO BE TRANSFERRED TO INVESTOR GROUP WHEN FULFILLED THE WHOLE INVESTMENT
COMMITMENT.
(B) PAYMENTS OF USD $ 400,000.- EVERY 3 months AFTER THE SIGNATURE OF THE
CONTRACT, DURING THE ALL STAGE OF EXPLORATION.
(C) CASH PAYMENTS FOR THE MINING GROUP WILL BE COUNTED AGAINST THE ACCOUNT OF
THE FUTURE PROFITS OF MINING GROUP.
11. DETAILS OR MAGNIFICATIONS:
THE PRESENT TERMS AND CONDITIONS WILL BE EXPANDED, DETAILED OR CLARIFIED IN THE
NEGOTIATIONS OF THE FINAL CONTRACT AMONG THE PARTS, EQUALLY OTHER TERMS AND
CONDITIONS NOT INDICATED PRESENTLY, THEY WILL BE INCORPORATED IN SUITABLE
NEGOTIATIONS.
GRUPO CYD
Acari iron Peru, Eng. Noe Rodriguez Email: [email protected] Skype noerods
ACARI PROJECT/INFRASTRUCTURE ANNEX N°6
ACARI OWNS TRAILS OF ACCESS
INSIDE CONCESSION FOR 60TONS TRUCKS.
AT 12 KM OF THE PANAMERICAN HIGHWAY
PORTS AND DISTANCES FROM ACARI
1. PISCO/230 KM (10M SEA DEEP)
2. SAN JUAN/60 KM (15M SEA DEEP)
3. SEA BAY/42 KM (27M SEA DEEP)
TO BE CONSTRUCTED LICENSE OBTAINED
ELECTRIC LINE AT 15 KM.
WATER AT 18 KM.
ACARI
PROJECT
1
2
3
GRUPO CYD
Acari iron Peru, Eng. Noe Rodriguez Email: [email protected] Skype noerods
PICTURES OF ACARI IRON CONCESSION
GRUPO CYD
Acari iron Peru, Eng. Noe Rodriguez Email: [email protected] Skype noerods
PICTURES OF ACARI IRON CONCESSION
GRUPO CYD
Acari iron Peru, Eng. Noe Rodriguez Email: [email protected] Skype noerods
If interested, contact authorized agent:
Regards.
Eng. Noe Rodriguez
Company: ARKESA
Emails: [email protected]
Phone: +511-392-2233
Mobile: +51-992456967
Fax (USA): +1-206-3330645
Skype: noerods