Loan amount
$10,000,000
Loan type
As-Is Property Value
$50,000,000
LTV
20%
{LTV}
Property type
Quarry
Borrower Details
Credit score
400
Deal experience
25 deals
This loan scenario was submitted by a Broker
Property Details
State
North Carolina
Loan Details
Additional Loan Information
My client with 25 years of mining experience will place the mine and its valuable Aggregate as collateral for a Ten Million ($10M) loan.
A Feb. 2016 valuation: The proposed mine consists of two parcels totaling approximately 214 acres and aggregate reserves are more than 200 feet deep. In consideration of the 250 ft buffers along property lines, 50 ft buffers along streams and wetlands, and a 1:1 (H:V) evacuated benched perimeter slopes, about 1,631,322,000 tons of aggregate can be extracted or mined from this site. Assuming an aggregate value of $12.50/ton the gross aggregate reserve value is $20,391,525,000.
My client has an agreement to buyout his partner with execution of the loan. The mine was closed four years ago when the partner got into trouble with another of his companies that was greatly impacting operations at the mine.
It'll take two months to restart the mine and then it will produce a net profit of $200,000 per month which can be increased by working more than 5.5 days per week. It is possible that the mine could operate 24/7.
Supporting Loan Cash Flow will be supported by my Client’s Commodity Trading Business. The bank, or lender, can prove this by providing a $2M secure account for one month where no funds are withdrawn, but the only requirement is for two ‘Proof of Funds’ be issued to my Client’s Supplier in one month. Then my client will deposit at least $1M in a Commodity Company Account to support the mine and will guarantee that amount as a continuing minimum amount, or higher, as a guarantee for the mine’s loan payments.
Additional details are available as to startup and operating costs as well as potential buyers and current Low Weight Aggregate Pricing (which will increase the profits and reserve value).
A Feb. 2016 valuation: The proposed mine consists of two parcels totaling approximately 214 acres and aggregate reserves are more than 200 feet deep. In consideration of the 250 ft buffers along property lines, 50 ft buffers along streams and wetlands, and a 1:1 (H:V) evacuated benched perimeter slopes, about 1,631,322,000 tons of aggregate can be extracted or mined from this site. Assuming an aggregate value of $12.50/ton the gross aggregate reserve value is $20,391,525,000.
My client has an agreement to buyout his partner with execution of the loan. The mine was closed four years ago when the partner got into trouble with another of his companies that was greatly impacting operations at the mine.
It'll take two months to restart the mine and then it will produce a net profit of $200,000 per month which can be increased by working more than 5.5 days per week. It is possible that the mine could operate 24/7.
Supporting Loan Cash Flow will be supported by my Client’s Commodity Trading Business. The bank, or lender, can prove this by providing a $2M secure account for one month where no funds are withdrawn, but the only requirement is for two ‘Proof of Funds’ be issued to my Client’s Supplier in one month. Then my client will deposit at least $1M in a Commodity Company Account to support the mine and will guarantee that amount as a continuing minimum amount, or higher, as a guarantee for the mine’s loan payments.
Additional details are available as to startup and operating costs as well as potential buyers and current Low Weight Aggregate Pricing (which will increase the profits and reserve value).
Status
Closed
Created
June 8, 2020 - 9:13am
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