Marketing Rights Agreement (MRA) SUNRISE MINING LIMITADA. ( Formerly Osho Gremach Mining Limitada )

Transcription

1 Marketing Rights Agreement (MRA) SUNRISE MINING LIMITADA ( Formerly Osho Gremach Mining Limitada )

2 Sunrise Mining Limitada Mining Licenses 7254C Sunrise Mining Limitada is a formerly Osho Gremach Mining, Limitada which is privately owned Mining Company Holding Mining license 7254C located in the area of Moatize - Minjova Coalfield at Mozambique.

3 Tolling Option :- PRIME HARD COKING COAL MINE - A tolling option i.e. marketing option, where we give marketing rights for 4 to 6 years with a discount on index. - Also we can appoint a Mining Development Operator (MDO) And to Quasi Management Company to run mines and operate banks accounts and investor has to pay money for small amount of the material i.e. handed over at port. - Say the investor pays $60 for every ton of coal given at port under his control. - Investor then sales the coal at an index pricing of $200 ( variable at a discount ). - The mine owner gets the difference through Escrow mechanism. - Also, please note that in way the Marketing Rights Holder ( MRH ) pays very little cost, as an entry cost.

4 TONNAGES :- 1 ST Option Guarantee ( Discount to Index ) 1 st year Million 2 nd year Million 3 rd year Million 4 th year - 5 Million Total : 9-10 Million Tones over 4 years.

5 TONNAGES :- 2 nd Option Guarantee ( Discount to Index ) 1 st year - 1 Million 2 nd year - 3 Million 3 rd year - 5 Million 4 th year - 10 Million Total : Million Tones over 4 years.

6 FINANCING :- - Looking for US$ 3 million for pure off-take of million tones over 4 years. - Open for selling 5 stake at additional US$ 2 million equivalent to board seat. - Thus, total investment would be US$ 5 million for off take of million tones & 5 stake ( for further stake dilution premium shall be much higher ) - Quoted investment numbers are negotiable. Against 3 million, Marketing Rights Agreement ( MRA ) would make investor earn minimum $90 $100 million over 4 years of contracted tonnages in terms of discount.

7 Financing:- Mines owner shall handover the possession of mine to a Quasi Management Company which can be a separate JV company where the Marketing Rights Holder & Sunrise Mining Limitada can have board seat. Marketing Rights Holder can operate the JV company and be a majority shareholder & also can operate bank accounts and do site operation through a Marketing Development Operator on a licensing contract basis. - MDO Joint appointment is acceptable. - Joint mine operations Ready for deputing joint team representing both Sunrise & Marketing Rights Holder, on site for day to day mine operation. - Numbers would vary if Marketing Rights Holder wants: - More tonnage allotment & number of years - More equity stake in the project.

8 Mining Development Operator (MDO) Stefanutti Stocks Mining Services Mashova Thyssenkrupp ABB African Minerals ( Barbados ) Ltd. SPRL Dawnus Aveng Moolmans Mits Corp. Redpath Mining ( South Africa ) ( Pty ) Ltd. Mota-Engil Africa B&E International Maxam AEL Mining Services Altaaqa Global Coal mining Over 7212 million tones (Mt) of hard coal are currently produced worldwide and Mt of brown coal/lignite. Coal is mined by two methods: surface or 'opencast' mining, and underground mining.

9 Specification : Chipanga Premium Hard Coking Coal Analysis As Received Air Dried Dry Basis Dry Ash Free Total Moisture Inherent Moisture Ash Volatile Matter Fixed Carbon Total Sulphur Phosphorous (in Coal) Gross Calorific Value kcal/kg Rheological Analysis Ultimate Analysis () Dry Ash Free Swell (CSN / FSI) Caking Index (G Value) Sapozhnikov X (Shrinkage) Sapozhnikov Y (PLT) Dilatometer Initial Softening Temp. # # mm mm C Carbon Hydrogen Nitrogen Sulphur Oxygen (by difference) Max Contraction Temp. C 425 Ash Analysis () Dry Basis Max Dilatation Temp. Max Contraction Max Dilatation Total Dilatation Gieseler Plastometer Initial Softening Temp. Max Fluidity Temp. Resolidification Temp. Plastic Range Maximum Fluidity C C C C C ddpm SiO 2 (Silicon Dioxide) Al 2 O 3 (Aluminium Oxide) Fe 2 O 3 (Iron Oxide) TiO 2 (Titanium Dioxide) P 2 O 5 (Phosphorous Pentoxide) CaO (Calcium Oxide) MgO (Magnesium Oxide) Na 2 O (Sodium Oxide) K 2 O (Potassium Oxide) SO 3 (Sulphur Trioxide)

10 Continue Petrographic Analysis Ash Fusion Temperatures C (Red) Mean Max Reflectance R ov max 1.28 Initial Deformation Vitrinite Distribution V9 0 Hemispherical Flow V10 3 Coal Physical V11 V12 V Grindability (HGI) Top size (mm) Passing 2mm () V14 2 Coke Properties [350kg oven at 825kg/m 3 (db)] Macerals Vitrinite Liptinite Inertinite (Semifusinite) Mineral Matter Total Reactives (measured) Coke Mosaic Size Index NSC Reactivity Test - CSR NSC Reactivity Test - CRI ASTM Stability Factor ASTM Hardness Factor JIS Drum DI 150/15 Irsid Drum I20 Micum M40 (BS) Micum M10 (BS)

11 Technical Specification : Mozambique Thermal Coal Parameters Basis Typical Value Rejection Net Calorific Value kcal/ kg Ar 5500 Below 5300 Total Moisture ( ISO 589 ) Ar 8.0 NA Total Sulphur ( ISO ) Ad 1.0 Above 1.1 Ash ( ISO 1171 ) Ad 28.0 Above 31 Volatile Matter ( ISO 562 ) Ad 18.0 Handgrove Grindability Index Size ( ISO 1953 ) mm 0-50 COKING COAL THERMAL COAL

12 COKING COAL MINES TETE MOZAMBIQUE, AFRICA

13 Changing Scenario of Mozambique: The Moatize basin in Mozambique s Tete is world s largest untapped coal reserves of coking coal, used in steel production. The Tete province has Coal reserves of approx. 6.7 billion tonnes, of which 3 billion tonnes represent sub-economic or economic grades. Tete could be producing 25 of the world s coking coal by Highlight of the Asset: The block area is 8.80 kms and located just east of the Vale s Moatize Coal Project, and ETA Star s license area No. 1068L and also bordering on the North, South & East of the area is Riversdale s License area. The owner carried out a drilling program during 2009 which include drilling on 400 m grid, 11Nos. of confirmatory boreholes (NQ) have been drilled ranging depth mts to 185.1mts. In addition coal analysis was carried out on all cores. The program identified four coal seams ranging thickness from 2 m to 26.7 m confirming Hard Coking Coal with Thermal coal which is already confirmed by bordering Riversdale, Vale & Minas Moatize. Approach to Tenement: Main field camp of the Tenement may be approached from Tete town by two ways distance 58 kms and 83 kms only within one and half hours journey by road. (Location map attached).

14 Coal Evacuation Infrastructure: Nacala Line: 1200 km rail Tete with Port of Nacala can export upto 22 MTPA. Sena Line: The 660 km Sena railway line runs from Moatize to Beira port has a current capacity of 6.5 MTPA with planned expansion to 20 MTPA. Beira Port: The port connects Sena Rail, in Sofala province with est. 10 MTPA capacity. Macuse Line: A railway linking Moatize to port of Macuse, in Zambezia province with expected capacity of 25 MTPA. Reserve Calculation: PRIME HARD COKING COAL MINE On basis of Exploration carried out, 4 Coal seams were established in Block up to drilled depth of 220m below ground level & reserve computed seam wise given as under: - Total 55 bore holes have proposed to define measured reserve as per definition of SAMREC classification. Total 11 core bore holes drilled, which are spread throughout license area, Influence of drilling covered area lithologically vertically as well as horizontally. Depending upon the thickness of coal seam, Four coal seams have been identified which are named as seam 1, 2, 3, and 4.

15 Total Coal Reserve: a) Total Reserve (Tonnage) = MT b) Total Reserve (-20 Geological losses) = MT c) Mineable Reserve (-10 partings) = MT d) Coking Coal (Yield - 35 ) = MT (12 Ash) e) Thermal Coal = MT (Ash 30) Raw coal qualities and a single product for gross energy value of 5500 kcal (air dry basis), was determined for each resource block. This relates to gross calorific value of MJ/kg on an air dry basis. The -0.5 mm fraction was not included in any of the coal quality calculations and might be hosting some of the high quality vitrinitic fractions that have good coking coal qualities. Measure Coal Reserve: Drill spacing for /2400 meters & with support of coal quality data it would be possible to classify resources as "INFERRED for thick inter bedded coal deposits. Mineral Reserve Estimate: PRIME HARD COKING COAL MINE All physical & analytical data given to author seems to be credible & collected within accepted industry standards. The resources were estimated using guidelines by the coal addendum to SAMREC code, namely SANS 10320:2003: The South African Guide to Systematic Evaluation of Coal Resources & Reserves. In situ Tonnage, the full seam is 372 MT.

16 Some of the charts - PRIME HARD COKING COAL MINE

17