Mineral

Chrysotile Fibre

Locations

SMM Holdings is a subsidiary of the Zimbabwe Mining Development Corporation and is comprised of:

1.      Gaths Mine in Mashaba – 35 Kilometres West of Masvingo Town, Zimbabwe

2.      Shabani Mine – Zvishavane Town, Zimbabwe

Mining Leases and Claims

1.      Gaths Mine – 4,355 Hectares

2.      Shabani Mine – 3,546 Hectares

Infrastructure

Total Assets – Valued at almost a Billion United States Dollars

Documentation Available

1.      Geological Reports

2.      Feasibility Reports

Funding Required

TOTAL US$135 Million for:

1.      Mine Recapitalisation

·         Repair and replace capital equipment

·         Mining of chrysotile fibre

2.      Working Capital

·         Dewatering of the flooded Mines

Breakdown of Funding Requirements:

Gaths

Shabani

Capital Expenditure

38.4

51.2

Working Capital

14.2

28.7

Total

52.6

79.9

Partnership Proposal

Joint Venture

Shareholding negotiable according to each party’s contribution

Investment Benefits

·         Proven and Probable Ore Reserves are 38.53 metric tonnes @ 5.9% fibre representing a Life of Mine of 17 years at full plant capacity of 150,000 tonnes of bagged fibre per year

·         Inferred resources – 25 to 30 years of production

·         Projected net cash flows of more than US$15 Million per month at full capacity.

·         Payback of 5 years

·         Return on Capital Employed being 27%

·         Employment creation

·         Rewarding Dividends for shareholders